I have two that are still in the process of being potty trained. Hercules is 10 months and Athena is 5 1/2 months. We put both of them in their crate at night, when we are at work, and whenever else we leave. If you are ok with crating your pup, then I would suggest putting him in there at night when you are sleeping. I'm assuming he's still pretty young. If so, set your alarm half way through the night and try taking him out. Since his bladder isn't fully developed yet, he will need to relieve himself before you wake up. As he gets older, he will be able to hold it througout the night. But give him time. It seems to me that he is having an accident in the middle of the night because he can't quite hold it that long enough yet.
Also, I think you should try taking him out a little more often. Every 1 to 2 hours is probably not enough if he is young. I probably take my two out every half hour or whenever they go near the door.
As for the distractions outside, maybe try to keep him on a leash close to you and try not to let him play too much. Also, try taking him to the same place to relieve himself each time. That way he will associate this place with where he is supposed to go potty. Also, try not to play outside with him when it's potty time. There should be a difference between potty time and play time. After he potties praise him tons and tons and then take him in.
Hope some of this helps some.
Good luck and hang in there. I promise it gets easier!!