A group of 7 of us are planning to visit Yunnan

So you wanna hotel recommendations in each of the cities? As I don't know your budget, here are my general suggestions consdering the transportation and overall facilities of hotel accommodations:
Lijiang International Hotel is within 5-10min to the ancient town. For a hotel in the ancient town, the Sky Palace Inn is recommended.

Shangri-la Wuyue Scenic Area Hotel, Dali Grand Bay View International Hotel (near Erhai Lake), Kunming Hotel are suggested for other cities.

Once you succeed booking the hotels, you can ask your hotel to arrange the van with English-speaking driver and the price can be reasonable. Alternatively, I heard Travel China Guide offers the service as well. My friends used it in Guilin. The contact is traveltravelchinaguide.com. Try to consult and good luck!