I had stayed at Hotel Tamilnad at Yercaud with my family. The stay was marked by indifference from the hotel staff. All that I got from repeated complaints was a bad sore throat.
The rooms were very average with low cleanliness standards. By average, I mean average of budget hotel standards. I was not looking for wall to wall carpet but clean rooms with polite staff.
I had planned to stay for 2 nights but cut my stay to one night.

I will not suggest Hotel Tamilnad though it has an excellent location (near the lake).