Amar Atithi ,
Tel : (01905) 22515 
Tariff : Rs. 300

Ashoka Holiday Inn ,
Tel : (01905)22800, 22651
Tariff : Rs. 250-Rs.400

Hotel Evening Plaza ,
Tel : 25123
Tariff : Rs. 300 - Rs. 600

Mandav Hotel (HPTDC)
Tel :35503, 35551
Tariff : Rs300-Rs800

Munish Resorts
Tel : 35035, 35213
Tariff : Rs. 600- Rs. 900

Visco Resorts
Tel : 25057, 24640-41
Tariff : Rs. 600 - Rs.1200

Capacabana Bar & Restaurant at the Raj Mahal is a popular, open-air place where good food is served. Hotel Mandav is worth the walk up for a good selection breakfasts, and the bar in the next room.
The HPTDC's Cafe Shiraz,just behind the square, serves good food, curned 'finger chips' being their speaciality . Hotel Mayfair on the Indira Market Square is a bit classier and has views.
Hotel Standard in the same area has good cheap food. Hotel Shiva nearby is also pretty good. Plenty of dhabas and stalls selling just about everything are scattered around the market.