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I used to go to the Blue Mountains a lot, but rarely stayed anywhere better than a hostel, sometimes also camping - the ultimate in saving money! Try the camping ground heading down into Megalong Valley and pitch a 5-star tent, then you'll both be happy. :D I've also stayed in the Victoria &...

My wife and I stayed at The McClintock Guest House in Katoomba many years ago. It was really nice but not that cheap - a small place that only has 3 or 4 guest rooms. Doesn't look like you can book online though, so you'd have to ring them. GP