Restaurant Near Hilton Embassy Row
You are in a great location. There are so many restaurants within walking distance. Try looking up Dupont Circle on this board. There are many threads with suggestions. Here are some of my favorites.
2016 P St NW Ste 1, Washington, DC 20036
Sakana Japanese Restaurant
2026 P St NW, Washington, DC 20036
Pizzeria Paradiso - Dupont Circle
2029 P St NW Ste 102, Washington, DC 20036
1509 17th St NW Ste 1, Washington, DC 20036
2029 P St NW Ste 101, Washington, DC 20036
1351 Connecticut Ave NW, Washington, DC
Bistrot Du Coin
1738 Connecticut Ave NW, Washington, DC 20009
Close to there, decent Italian, would be Olazzo or Sette Osteria. Sette is more casual, but has nice outdoor seating if the weather suits. Olazzo isn't the fanciest, but it's been there a long time and I've had nice meals.
They both definitely fit the moderate pricing.
For American, definitely Firefly. It's wonderful, with a great atmosphere.
I'd look them all up online for menus, since one person's "moderate" can be another person's splurge.
Isn't Olazzo in Maryland? Maybe you're thinking of Otello on Connecticut? Additionally you could look into, IRicci, Luigi's, Pizza Paradisio, or if you want to go on the high end, Al Tiramisu (possibly the best italian in DC). There's also a Bucca de Peppo within walking distance on Connecticut and Florida. Of these options, I personally like Luigi's but I wouldn't call the atmosphere "upscale". It's a family joint. To tell the truth, none of these places have a great atmosphere but if I had to choose the place with the best atmosphere, I'd go with iRicci or Sette.
For American, check out Urbana, which has a great atmosphere and food/wine.
Do....not...go....to....IRicci!!!!! Cannot repeat this mantra enough. :)
In the Dupont Circle area for Italian I would go to Sette Osteria or Al Tiramisu. Pizza Paradiso is also good but much more low key.
I hear a lot of recommendations for Obelisk. I believe it is modern Italian, but someone else should probably comment. It's suppose to be delicious!
For American, Hank's Oyster Bar isn't too far away, although it is on the other end of Dupont Circle then you. You can also try Mark and Orlando's on P St. Firefly is also a nice recommendation with an interesting atmosphere (there is a tree in the middle of the restaurant and they give you the bill in a mason jar...very cute).
If you don't mind walking a little farther towards the West End you can try Blue Duck Tavern (it's probably a 15 minute walk or so, but worth it).