The Hemkund Basera Hotel has some nice rooms but make sure you get one with a view and bit windows. The others are a bit gloomy and damp... But if you get one that faces the town you'll have a beautiful view! It is not the cheapest one though. We got a double room for 600. If you bargain harder you can probably get it for 500.
The owner is so creepy though and talks so much nonsense and so many lies that in the end we couldn't get away fast enough (we stayed there for a week). Several other women that we talked to had the same opinion. Sexual references, talking about his girlfriend/wife/mistress, wanting to heal us with his supposedly ayurvedic massage techniqes, and so on. The list is long.
So place is nice but keep a distance to that guy. And stay away from the restaurant by the way. It's nothing much.