Budget
Many backpacker types pass through Maseru en route to Semonkong Lodge or Malealea in the mountains, or head to Ladybrand in South Africa. However do not discount Maseru as a budget overnight destination - there are affordable accomodation options, the best of which is probably the Lesotho-Durham link.
Lesotho - Durham Link
3 km from the centre of Maseru you'd need to get a taxi or a combi down the old airport road, ask to go to the Agric College as your driver may not have heard of the place. Camping is also possible at M35 per night - only recommended for the summer months October through May.
Midrange
Mohokare Guest House
Tranquill modern,comfortable and safe accomodation,3km from the city centre. Its a great place to stay without being expensive. Quote 'Kavi' when booking
Foothills Guest House
A short walk from town in the leafy Maseru West suburb where the King and most of the Government live. A good alternative to the pricey hotels in town.
Mpilo Lodge
Top end
Lesotho Sun
Perched up high on a hill overlooking the city. Not one of the Sun hotel chain's flagship hotels but it is the most 'luxurious' hotel in the city, with a very nice swimming pool. As Lesotho's classiest hotel it hosts endless government workshops and is where foreign dignitaries stay when visiting for regional conferences. Refurbishment has been on the drawing board for ages but is always set to commence 'next year'. There is a casino on site, gym, small cinema and business facilities.
Lancer's Inn
Right in the centre of Maseru, just off Kingsway, this is a nice colonial style hotel, reasonable rooms, and also self-catered rondavels available. Lancer's tends to be used by business travellers, although King Letsie occasionally dines in the restaurant.
Queen Proteas
Opened in late 2009. Luxury hotel a little way out-of-town hence this is a better option if you have a car. All rooms are en suite and have wifi access.