My wife and I recently stayed in the newly built Athreya Multi Specialty Ayurvedic Lake Resort in Pallam, ideally located on the banks of the Lake Vembanadu, which is part of the world famous Kumarakom backwaters 4 km south of Kottayam and accessible by road or by boat. You get very friendly service, good food and a pleasant atmosphere at a most reasonable price. Yoga is taught by a most charming lady. Inquire if there are any religious festivals in the nearby church, because they tend to be noisy. Bungalows are comfortable and clean but the walls are thin. This seems the best place to stay around Kottayam at budget price. Contact owner George at Tel. 944-6129213 or see www.theathreya.com