If you are looking for an inexpensive places to stay and eat, here are a few suggestions:

Sky Ranch Lodge (888-708-6400) is located near the airport and the restaurant, and Cedars Resort (800-874-2072) located at the “Y” near the down town district.  Both locations have been very reasonable in price, without forfeiting safe clean rooms with the necessities that you might need.

Many of the locals eat at these two restaurants: the Coffee Pot Restaurant and the Airport Restaurant.  Both have very good meals at fair prices with good service and are enjoyable places.  The Coffee Pot is located more towards the west side of town – definitely not in the main old town tourist area, but is very easy to get to from most anywhere in town.  The Airport Restaurant you will need to drive up the road to the top where you can enjoy the view overlooking Sedona and the red rocks.  The small airport and restaurant are located on top of Table Top Mountain (small mountain) with a wonderful view overlooking the area.  

Hotels as you know are many in the area, from the bottom of the scale to the top.  Each one offers special items that make it more attractive then some of the others.  It all depends on what you want to pay and what services you want.  The two names above are wonderful affordable places to stay while staying on a budget yet not giving up safe, clean, comfortable lodging.  

Cedars Resort:  http://sedonacedarsresort.com/ 

Sky Ranch Lodge:  http://www.skyranchlodge.com/