Flight
Cedar Rapids is the closest airport to Iowa City (about a 20 minute drive) and usually has prices comparable to the airport in Des Moines (which is a little less than a 2 hour drive).
Hotel
In a quick online search I found the Hilton Downtown Iowa City looks like the most reasonably priced and is relatively new. It's also a little less than a mile from Big Grove Brewery. The Graduate Hotel is also nearby, but pricier. If you don't mind driving around more there are many other options in Coralville, IA.