I just had been at hampi. As per your budget you can go with any. If you want to chill out and try something different and continental food or even Israeli food then book your room at hippie island instead of hampi. In hampi there are many good option to stay like gowri resorts and homestay. And in hippie island there is mogli resort which offer many varieties of stay like tent, huts, home stay and ac rooms. I would recommend you to take room at hampi for first day stay and after exploring hampi go with hippie island so next day you can visit anjanadri hill for sunset and sanapur lake.
I haven't stayed here, but the ratings don't seem good. I have stayed at Mowgli - go a good discount deal and loved the place. You can read my account here and see my sketches for inspiration: http://lonelycanopy.com/hampi-sketches/ Happy journey!