We recently stayed at the Lithgow Valley hotel and to our surprise were very satisfied with our stay. If you are looking for 5 star accommodation then this isn't it and I dont think there is such a rating for Lithgow hotels, but we found this to be a ''Hidden Gem'' Clean, comfortable beds with very friendly service.
This motel boasts a a tepanyaki restaurant with very reasonable prices for same. Situated away from the Great western Highway (where the majority of Lithgow hotels are found) tucked away opposite a caravan park is Lithgow Valley with views of the mountains. We had two single beds in our room, and granted the rooms are small but adequate with heating, electric blankets, fridge, T.V shower and toilet everything most people meed and it was scrupulously clean!!! . We payed $70 a night and our relatives in other hotels were most dissatisfied with service etc and paid $130+ and we are talking Lithgow here not New York!!
It is close to McDonalds, KFC, and Red Rooster and not far from the main strip with cake shop, coffee shops galore and the Workers Club just a couple of minutes away.
I would reccommend this to anyone who wants a clean,quiet place to lay their head close to all attractions.