There are several inexpensive options flanking the Jakhu Ropeway tower. The Woodland might be a tad ragged and humid with rusty geysers but for the price it's hard to do better hereabouts. The thin mattresses aren't bad and there are attractive views from the upper balcony room 316.
Access is via the stairs marked Hotel Tithi. The over-enthusiastic 'Commander' who works here often recruits backpacker-guests that he finds on The Ridge.