The area is a vacation mecca for Thais, so there are plenty of hotel options. For me, neither the costly and bland upper-end hotels or the dirt cheap and dirt dirty lower-end hotels had much appeal. Hotel Baan Khachathong was a perfect medium.
For a crazy affordable price of $22, the rooms are very clean and bright, include reliable wifi and surround a lovely little courtyard area. It is off the main road in Hua Hin but set back away from the street making for a quiet but convenient location. An organic/specialty foods market and Italian restaurant I never got the chance to try are right next-door, and the night market is within walking distance.