Hey Kiran,
For stay options :-
I would suggest you to stay in Madikeri center only as it's accessible and also you have got lot of options of stay here ...
Hotel Madikeri heritage :-
Near private bus stand -
http://www.madikeriheritage.com
08272228989
Oyo City Comforts inn :-
Near Vivus hospital
https://www.oyorooms.com/14016?utm_source=Google_gmb&utm_medium=Organic&utm_campaign=COG113
07065009189
The fort mercara hotel :-
Near police Station
http://www.thefortmercara.com
09972333055
I have personally stayed in oyo City Comforts inn and its a very nice hotel with medium range of cost ... family tourists usually opt this hotel a lot ...
The Coorg Chalet - A Family Homestay
Keethianda Home, Behind Canara Bank West Branch, ITI Junction, Madikeri, Karnataka 571201
http://coorgchalet.com
9480788503 ...
Happy Travelling Bro!!!