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Hey brother u will get cheap hotels in hampi near mango tree restaurant but i suggest u to stay on hippies island where u can get tents in low cost and enjoy the night life of hampi
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If you are traveling from Mumbai via Bus take the bus to Bangalore via Hubli, From Hubli you can either go via cab or Bus, but i will insist by booking a cab from Hubli to Hampi. Have a great time.
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You can book a bus from redbus and if not, train is the preferred option. You will find so many options at a budget price to stay in Hampi on arrival. Get a boat to the hippie island and stay over there. The atmosphere is perfect for travellers out there.
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Bus and train info can be found here - http://hampi.in/mumbai-to-hampi Stay options are lot. If you want to pre-book, you have few listed under booking.com. There are just guest houses and shacks. Prefer to go there and book the stay. There is 2 side of Hampi - Anegudi, the silent side and the Hippie island- crowded one.
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Try zostel
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