Kasauli is not really a backpacker destination due to the lack of cheap accommodation. Visiting in the off-season or on weekdays will get you better prices.
Kasauli InnKasauli Inn is the cheaper hotel of the owners of the Kasauli Regency and Kasauli castle. Officialy the rooms start from R1600,-, but one of the owners likes foreign backpacker. He'll make sure you get a good discount when you visit on weekdays and the rooms are quite light, spacious and in a quiet place. A 20 min walk from the village/busstand and next door to the popular Kasauli regency hangout bar.01792272600. (http://www.kasauliinn.com/)
The Blossom Resort is surrounded by thick pine trees at 5000 ft. above sea level, adjoining Kasauli. Guests enjoy the sweet smell of pine trees and the panoramic views of the natural environment around the resort.
Kasauli RegencyVery nice hotel apx. 20 mins walk from Kasauli centre. Prices start from R 2500,- and up. The restaurant and rooftop bar are well known by return guests. (http://www.kasauliregency.com)