Hotel Intourist
A typical Soviet hotel with typical dour Soviet service and rooms that look unrenovated since the Khruschev era. Water and electricity are not always available. On the second floor, Rooms No. 1 & No. 2 have been renovated 50 lari - more if you are non-local/Russian; the rooms on the third floor, while cheaper, are less than desirable.
Gori is conveniently only about an hour away from Tbilisi by marshrutka, so it is possible to visit Gori and Uplistsikhe as a day trip. There are not many commercial opportunities for overnight stays, though the options are improving. Staying in Gori does present a cheaper alternative to Tbilisi, and can be a pleasant change of pace from the capital.
Gueshouse Marina
A comfortable guesthouse located in a quiet neighborhood about a 15 minute walk from the city center. The rooms are spacious and very clean, and the hosts warm and hospitable. Hot water is reliable, and the price includes breakfast, internet usage, and pick-up from the station. The owners speak Georgian and Russian, the son knows some English, and they can help arrange day trips in the area. April 2011 update: some people are renting the house long term - there is no room available