Gasthaus zum Hirschen
(http://www.hirschen-kirch...) baden, in kirchdorf dorf; a charming little village further up the valley. there's a bus every 20mins into baden, which takes 15mins. good clean modern rooms in an old traditional swiss building. single room 95chf.
Blue City Hotel
(http://www.bluecityhotel.ch/) business hotel. the hotel offers singel and double rooms, meeting rooms, a restaurant and a bar/lounge on top of the building. very central 1 minute to the train station, 2 minutes to the abb/alstom complexes, quite expansive.
ATRIUM Hotel Blume
The ATRIUM Hotel Blume (http://www.blume-baden.ch) in Thermal Baden opposite the main baths. Famous for it's old world charm with the main ATRIUM having been built in 1840. A place to stop and see if only for a coffee.
If you can afford it, also consider the hotels near the Thermal baths, such as:
Verenahof
The Verenahof (http://www.verenahof.ch/) hotel had a direct 'tunnel' to the baths, however the hotel closed in September, 2002 for renovations.
Pension Frau Meise
A small and cute Guesthouse with his own little Café in the middle of the old town