We didn't actually stay here but came one evening to use the WiFi and enjoy a few drinks in the courtyard. The atmosphere was cruisey and relaxing and in a green setting, and the staff were friendly and helpful. The power went out a couple of times while we were there.
On the other side of town is the Rift Valley Pension, where we stayed from two nights, Birr150 (after some negotiation) for a double room with ensuite with hot water, a TV and mosquito net. It was just down the road from Friendship Cafe and the office where you organise the hippo/crocodile boat tours.