"I have a 7 hour layover in CDG. What are the things I can do to spend my time in the airport. Is there any transit hotel in the airport? "
First of all, CDG is not really a good airport to transfer at, more so if you must remain in the airside area (yuck!).
They have separated departures from arrivals, so it is almost impossible to go terminal hopping. See if you can take the transfer bus to Aerogare/Terminal 1, as they have more facilities airside, common lounges, etc. All of the lounges at CDG 2 are: Air France(should be at all of them),
AA, AC, and CX(nice) at 2A. There are more lounges on the upper levels at T 1. See if you can get a day pass at the Salon Icare(if that is the right one, good choice of self-selection drinks).
You can then take the transfer bus back to Terminal 2, as more than likely you will be changing terminals at Aerogare 2 anyway.
US flights on AF at 2C, on AA at 2A, and intercontinental at 2F.
You can ask the girl at the transfer desk which satelite has the bus. I have been meaning to do this. But only do this once, to the terminal you are flying out of, as you will be stuck there. Terminal 1 is the only one where you can freely come and go. Once you are in airside departures at all of the others, you can't leave. I hate that concept so much. When flying BA out of 1 one time I asked the passport control officer, en francais, to let me step out for a moment and she said, non! I was shocked. Hence, was stuck til flight time.
I would recommend going to passport control and asking for a day visa. Unfortunately, they don't usually speak much English(or anything other than French, for that matter

. Also, as France is a part of the Schengen agreement, they have become much more strict with visas and bureaucratic red tape. Few countries outside of Europe(Western), US, and Canada get into Schengen visa free anymore, very sad. Hence, changing planes at Zurich or London would have been better. CDG is just not set up for transfers and can be a royal pain.
If you do manage to get public side, Aerogare 1 and 2F have some good shops publicside and I would def. take the train or bus( I think it was $8US ?? each way ) into Paris. I honestly can't imagine spending 7 hours at CDG, sorry. Schiphol would be more doable, fyi for the future.
I hope this helps. I will be there in 2 weeks.
Ah, as for hotels, there are several hotels around CDG, but all landside. There is a small transit hotel, if you want to call it that, at T1, but it is only in the public side, hence visa could be a problem, but it is cheap.
The Sheraton is very nice, one of my fav's, but it has become almost cost prohibitive.
I am staying at the Hyatt, very nice hotel, but further away from everything and no view of the planes,

.
There is a Novotel, Ibis, and Arcade(cheap brands) inside the airport at the RER(metro) area, plus, there are some good eating places with wonderful eclairs

... They may and probably do have day rates. I enjoyed the Novotel(good views of tarmac), decent rates.
The Hilton is another expensive one. I don't know why these hotels are so expensive.
Sorry for the book, but figure this will help others out at the same time.
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MD
AA PLT,1 MLN Miles+
Hilton Gold
Sheraton Gold