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My first night in a cheap Indian hotel was not without its surprises. As this was my first experience, I somewhat overreacted to the visitors. In hindsight, the unexpected visitors are to be expected in these places.
Keep in mind this video certainly isn't indicative of all cheap Indian hotels. Since this video was shot, I've stayed in much nicer hotel rooms for only slightly more per night.
I'm on a very tight budget for the next four months, so I anticipate sleeping in many more "cheap" hotels. There are plenty of them around -- the trick is finding the ones that are both cheap and clean. I've discovered that asking a ricksha driver for a recommendation can work well.
Every hotel I've been to so far has had a flushing toilet. Some of them even have shower spouts, although I can't say I've used them; since adjusting to showering from a bucket, I'm starting to prefer that method over the "normal" shower!