List of some small hotels/inn for backpackers:

Secret Garden Inn
All rooms air-conditioned,friendly staff, close to the beach of Kuta and shopping facilities with a quiet and secluded place.
Address
Poppies lane 1, Kuta, Bali, Indonesia
Tel.: (0361) 76305 1 / 2
Fax: (0361) 763055

Sayang Maha Mertha Hotel
Jalan Melasti Lebak Bene, Legian Klod, Kuta, Bali, 80361 Indonesia
Email: sayanght@dps.centrin.net.id
Tel/Fax: 0361751249

Bali Sorgawi Hotel
A 33 rooms hotels located between Paddy’s II Pub and BNI bank. A door step to cafes and restaurants, pubs, art markets. All room airconditioned, hot/cold water, TV, fridge.
Address
Jalan Legian Kelod, Kuta Beach, Bali 80361, Indonesia
Tel.: +62 (361) 755 266 / 763 220

For those who loves water activity such as jet skiing, parasailing, banana boat, flying fish, may be you will consider to stay in Tanjung Benoa, Nusa Dua. And here is one of recommended deal in this place, Aston Tanjung Benoa. The rooms are very spacious with large bathroom and nice balcony. There are plenty of restaurants in the area.

Address:
Jln Pratama, No.68X,
Tanjung Benoa Nusa Dua 80363
Bali - Indonesia
Phone: +62-361-773577

Read the review here.

One recommended deals for your holiday in Bali. This Resort is located in Legian, set amongs beautiful tropical garden. This resort is close to art shops, restaurants and entertainments which located within walking distance from the resort.

Address:
Jl. Padma Utara - Legian Beach,
Bali - Indonesia 80361
Tel : 62 361 755971 , 62 361 7443671
Fax : 62 361 755972
www.melastibali.com

See the review for this resort here.