If you are looking for a reasonably nice place to stay with no big holes in your pockets, then Surguru might be place for you.
The Good :
1. Large and comfortable rooms for a couple and a kid.
2. Price is quite competitive. Around 2000 INR per night (24 hrs check-in/out)
3. Efficient room service.
4. For south-indian veg cuisines lovers, the restaurant is the best in town!
5. Front desk is helpful in giving tips and advices on Pondicherry.
The Bad :
1. Far away from the beach front. The beach is 2 kms away!
2. Not much choice of food in the restaurant. Completely vegetarian menu.