We will be in Shimla for 2 days, can somebody suggest which area is better to stay- Mall road, Tara Hall or somewhere near bus stop. I checked few hotels in mall road area but they are bit expensive and I do not feel they are worth the price. I am willing to spend around 4K-5K per night.
In your budget I think best bet is to check Hotel Willow Banks at Mall Road, its not very far from Railway Station and Bus Stop plus the view from this hotel is mind blowing, last time I was there in January first week and I really loved the view of snow covered mountains and trees. You may consider checking Hotel CK International near bus stop and Hotel Baljees Regency at Tara Hall.
Any particular reason why you want to stay in those crowded areas? There are plenty of good properties outside the main populated areas and are reasonably priced too.