As an traveller I would suggest to stay in hostel than any hotel. The experience will be more vast and cherisable. When I visited there I stayed in Vista hostel. You can check out their profile in hostelworld. They have the availability to both dorms and personal room and dorms are as low as 400/- per bed. The location is literally such that you'll fall in love with, it's completely remote from the city hustle. The only thing is it's 16km before Nainital if you're going from Delhi. So if you're looking for particularly in the city then it's not for you otherwise there will not be any better property in the area other than this.
After a short trek from the property of around 500 metres you can have the view of whole of Jim Corbett National Park.
It worth a try.