Reflections Guest House
A short walk along the main road - turn right coming out of the train station, or left coming out of the bus stop which is opposite the train station. it is tidy and with good views of the lake and hills. stayed there in september 2010 at cost of rs550/night for upstairs room. location is very good - short walk to train station and bus stop, short walk to boat house, thread gardens and other tourist attractions. the food in the restaurant is good value for its price and nicely cooked. the owners are helpful and professional, and the common spaces make it a very friendly place to stay - i made several friends in my 3 nights there.
Sherlock Hotel
(http://www.littlearth.in/...). a newly renovated colonial villa several kilometers away from the town with breathtaking views of the surrounding hills and warm and friendly service. rooms have cozy fireplaces and cost between rs. 1875 and rs. 3000 depending on size and view. the restaurant alone is worth a visit serving outstanding murgh boti masala and mint paranthas. several short walking trails start nearby. a trip to ooty is worth it just for a stay at this hotel.
Hotel Savoy
From the taj group is one good option.sitting firm on a rising hill, the hotel sprawls over six acres of landscaped gardens, offering colonial style cottages that were built between 1834-1865. colorful flowerbeds merge to form a multi-coloured quilt around the cottages, adding to their gentle refinement and old english charm. a quiet retreat, the savoy hotel offers a little pocket of paradise.
Hotel Sinclair
Great view of Ooty and surrounding hills. 5 minutes drive to go to the town market and restaurants. The hotel has its own restaurant and a bar. Complete renovation in progress December 2011 but should be completed by end Feb 2012.
Hotel Tamilnadu Its a very reasonable rate govt. hotel with a value for money. Good south indian food is available , but if you want other variety of food better go for other restaurants. Standards rooms cost 1000/- per night. Online booking facilities are available also. Go to ttdc page for online booking