I think we need to know why you are going to Sherman Oaks / Universal City / Hollywood?
Are you going to Disneyland? If so, then you are going to be many miles south of Sherman Oaks. If you are going to Universal Studios, then I agree that staying in Universal City is a much better choice. You will be able to walk to the park and avoid the drive through traffic. Sherman Oaks is a business section of the valley right next to the Freeway (yuck) - it is a reconditioned hotel (I think it was a Holiday Inn). I've attended seminars there in the past and it isn't a great place to stay with kids. (I lived in the San Fernando Valley for 56 years - born and raised there - until 3 years ago when we moved to Santa Barbara).
Another way to drive north from Disneyland (if you are going to skip Universal City) is to take the 10 Freeway to Pacific Coast Highway. That will allow you to drive along the coast and see Mailbu. A scenic drive (eat at Dukes in Malibu - it is right on the beach, great views of the ocean and Los Angeles - good food, moderate prices) - and some of California's best beaches, like ZUMA Beach. When you get to the end of the coastal drive take Los Posas offramp and go north back to the 101 Freeway North.
If you do go to Universal City, then when you go north you can take a detour (if you have the time) by taking the 101 Freeway north to Topanga Canyon Blvd.. Go south on Topanga Canyon Blvd. to the beach, turn right (its Pacific Coast Highway) and you can take the drive through Malibu that I described above.