I just came from Gangtok, I booked one hotel there and that was cheaper in comparison to other hotels, I have his contact number if you wish you can contact him. Darpan - 8972814510 He also provide packages for Sikkim trip, if you u can take that also. Try to negotiate with him a little he will give you a fair amount.
Yes lot of cheap stays are there. I have even stayed in are Rs. 450 per night which was not bad for the price offered. Nice range hotels you will get from 1000.
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