Hi Warden, let me see if I can help you.
Check In desk in Terminal 5 open around 0445 for baggage for flights before 9am, after that time bag drop for Euro flights is 2 hours before, and International is 3 hours before (That is the time BA can accept your bags)
If you get yourself checked in on ba.com 24 hours before, all you need to do in the morning is go to a bag drop desk (Try going to Zone C as Zone B can get a bit clogged up sometimes)
After dropping your bags, head to North Security and go thru, be prepared however to be sent to South Security at the other side of the building, south Security (Behind the screens) is also the main security point for transfer passengers and can get very busy at peak transfer times. The 2 main times you need to be wary of are 45 minutes before flight check in will close, and 35 minutes before flight conformance will close (You have to have had your boarding card zapped at Security before -35 otherwise you will not be allowed thru) I would say aim for a 7am flight to be there around 0500 - 0515 at the latest that way you have plenty of leeway should there be a queue or should something happen en route, and if it is quiet and you go straight thru, well T5 is a fantastic place to spot from airside with views looking down towards the other end of the airport and overlooking B terminal where the Long Haul aircraft park up.
Hotel wise, well, LHR has them all, the Jurys Inn is close to "The Green Man" pub, which us anneters frequent at the LHR meets, and of course you also have the Renaissance Hotel which has rooms overlooking 27R/09L.
All Heathrow Hotels have a Hoppa bus that will take you to the Terminals at about £4 one way which I think might be best for you. There are other methods of getting to the terminal using the free public buses but If your not familiar with LHR, it might get a bit confusing.
Hope I have not waffled on too much. If you want any more info, dont hesitate to pop me a PM.