You have to walk a little to this place, but passing by the apple orchards makes it worth it.
It's located on one of the last drop-offs so you have a beautiful view of the other side of Manali Valley (over more apple orchards).
The rooms are above average for what you'd expect from a budget guesthouse- with the addition of wooden frames to the windows (and floors? I can't quite remember). Hot water in the bathrooms, and an overall feeling of space and calm in the place- due as well to the location, a little off the road where no cars come anyway.
The hostess and host are very friendly, and will go out of their way to make sure that anything you need will be provided (at standard guesthouse rates).
We left very happy with everything and wishing we could have stayed longer.
Room rate was Rs 300.- for a double.