There are some pretty cheap hotels that youcan stay in Damascus. They offer good service for the prices that they have.
Baik Bash Boutique Hotel
This hotel is located in the Old City and it is very near the best night places and the best attractions. There are 8 royal double rooms and each room is decorated and colored in the color od the eight old Damascene flowers. The hotel has its own restaurant which serves local and italian cuisine. There is also a cafe where you can grab a cup of coffee and even watch a movie during the day.
Beit Rose Hotel
This hotel is actually an old 18th-century Damascene house which has a rooftop terrace from where you can see the Old Damascus and Moutn Qassion. The rooms have free wi-fi, air-conditioning and are designed in an elegant style. The hotel has an old central courtyard where you can grab breakfast. It is located in the heart of the Old City, so there are many fun things to do close to it.
This hotel is located very near to the Umayyad mosque and to ther great attractions. The rooms are styled with old furniture and mosaic floors; each room has a TV, fully stockd bathroom and other things. The hotel has an outdoor terrace which overlooks the city. There is also an outdoor courtyard and a traditional hammam. The hotel has its own restaurant which server local and international dishes.