We usually stay in budget hotels ( the Mariam is moderately priced , not cheap) but there are two logistical reasons for very highly recommending this hotel.
One -- you can avoid Amman (and I'm sorry, but in our opinion it's better avoided...). From the airport, Madaba is as close as the Jordanian capital, and the hotel will fetch you for a reasonable fee.
Two -- the Mariam arranges rock bottom prices for tours, which tours you can use to take you further instead of returning. As most tourists in Jordan head for Petra, this is a perfect place from which to reach it; taking the ancient King's Highway instead of the boring Desert Highway and so taking in absolutely spectacular scenery and visiting the crusader fortress at Kerak.
The hotel is very clean and comfortable, the service is fine, the owner speaks fluent English and Russian and is a fount of information on everything from local history to politics to travel advice -- in fact, he'll even explain how to ride the King's Highway by public transport (a very complex proposition -- but this should prove to you that the Mariam is not at all pushy with its tours).
You get breakfast (which isn't great -- a minor flaw), and you can get good local wine and beer at reasonable prices and peruse the books in the lobby. The owner or his wife will also recommend a truly terrific restaurant in town, and Madaba has a lot to offer -- from the famous mosaic map of the Holy Land to Mount Nebo and its proximity to the Dead Sea (the hotel also arranges trips to these places, and the site of Jesus' baptism).
The hotel is within walking distance of the town's sights but quiet, rather like suburbia but with goats wandering about. A relaxing place, and if you are on a long trip (as we were, Istanbul to Cairo) this is a very nice spot to take a break from the rigors of travel.
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Theme: Hotel
Comparison: more expensive than average
Prices: US$20-40
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Phone: 5-325-1529
Address: Aisha Um Al Mumeneen.
Directions: Two blocks from Al-Mouhafada Circle; there's a sign pointing the way.