This isn't the cheapest place in town, but the rooms are clean, the water is hot, and Rocky is a fair guy. Good wifi and a pleasant rooftop, too. Downstairs rooms are much less expensive if you are on a tight budget. I didn't see them, but I imagine they are a fair deal. Recommended.
Now I will babble on, because for some reason TA wants a 200 character review on this one. The quick brown fox jumped over the lazy dogs. Try to spend at least 3 nights in Hampi - it is a great place to explore and hang out.

We spent 3 nights at Rocky's and overall it was a pretty nice stay.

We stayed in the room downstairs. It was a bit of a dissapointment considering the price (900 INR), as it was rather small and dark (window was facing a wall). The rooms on the upper floors are way better, so if you have a bigger budget, go for these.

Rocky (the owner) was very helpful, in particular with regard to our issue with the train tickets to Hyderabad. He also gave us useful tips for places to see arround Hampi.

The highlight of the stay at Rockys is the food, which is fresh and tasty, especially the thalis and the breakfast dosas.

Only a little more expensive than a hostel, but with many more perks. Great room quality- hot water, AC etc, brilliant cheap restaurant (with rooftop views!), and fantastically located right in the centre of it all.
Rocky is a fantastic host- always helpful, informative and great for a chat (especially if you like cricket). He speaks perfect english and sorted out all our travelling plans while in Hampi.
I recommend this place highly