There are very few mid-range accomedations. Dire Dawa has a better selection of hotels and restaurants.
Tewodros Hotel
From birr 50 double, a friendly, a bit out-of-town place, apparently you can watch the hyena from the balcony in the upper floor. often fully booked.
Tourist Hotel
From birr 40 single, very noisy disco-cum-brothel, try to get one of the rooms which are the furthest off the disco area.