The Temple,in front of Jami Masjid provide reasonable-priced stay Rs250 dec.2009, good for Night stay who dont want AC or delux room.
Nearby is The Rest House, similar rooms for Rs150 dec.2009
For Hotels, MP Tourism offers excellent options:
1. Malwa Resort - 20 cottages - 10 AC and 10 non AC2. Malwa Retreat - 8 rooms - 2 AC and 6 non AC
bookable online, see [ (http://www.mptourism.com])
Another option is the Rani Roopmati Hotel.
30 kilometers from Mandu is a town called Dhar, there is a old Palace, Jhira Bagh Palace, which has been restored and converted into a hotel. This is a very good place to stay and the food is simply outstanding. A must stay if you are going to Mandu.