There's a number of guest houses in the area, such as the following.
Gastezimmer Kleine Mühle
Reisperbachtalstrasse 50 +43 676 688 77 89 is in the neighboring town of stein. it's a wonderfully renovated old mill with a personable proprietor and wonderful breakfast 35 â¬/night.
Bicylcle Youth Hostel
RingstraÃe 77
+43-2732-83452
A Youth Hostel mostly used by bikers. Neat, cheap and near the city centre.
For a comprehensive list see Krems - Tourism german and english (http://www.krems.info)