This must be the best budget hotel that you can find in Shimoga. I did call them up and confirmed the availability before i even travelled from Bangalore. I reached Shimoga in the early morning 3.45 AM (volvo from bangalore) and reached the Hotel in an auto (25-30/-). Though all were sleeping, they were happy to wake up and welcome me as soon as i arrived and provided the room quickly. The rooms were really big and it was very comfirtable. The bed spreads were clean and neat and so was the room. The hotel also has 1 veg restaurant and 1 non veg restarutant + bar within . The room costed me 780/- (with tax) per night and I stayed there for 2 nights and i would say that was the best that you could ever stop in Shimoga town.
It is 1.5 Km away from the bus stand and 3.5 Km from the railway station. As it is a very popular hotel, the auto drivers would easily drop you there..
Have a good trip