Ludlow is a small and quiet town, and so does lack cheap accommodation. There is a Travelodge located about 5 miles outside of Ludlow proper, at Wooferton.
Ludlow tourist board offers a fairly comprehensive list of places to stay (http://www.ludlow.org.uk/...)
The Bringewood
Renovated Victorian farm buildings est. 2006 in 250 acres of beautiful English countryside. 11 ensuite rooms with modern touches blended in with the tradtional building. Unique accommodation for people who want something different. With 2 lounge areas to relax and enjoy the stunning views or the large wood burning stove to keep you warm during the winter. Restuarant offers high quality meals in a relaxed, informal atmosphere and caters for intimate meals for 2 as well as weddings, civil ceremonies, business conferences, private functions, team building days and corporate events. Near the market town of Ludlow; famous for its Michelin star restaurants, Shakespearean plays, food fairs and local farm produce.