There are few hotels located in Ellora. Some even offers a view the caves from the hotel balcony.
In general, visitors for Ellora stay at Aurangabad some 30km south of Ellora for better connectivity and facilities.
Of course Aurangabad has much more choices of hotels than Ellora. And also it is a continent base for excursions and onward journey. However if you are very specific look for one of the mid sized hotels in Ellora.
There are also some cheaper backpacked accommodations available in Ellora. If all get over booked, your next option is one of the hotels in Aurangabad!
The tourist attractions of Ellora is spread over the 34 or so rock cut caves in a row. The centerpiece is probably the massive Kailashanatha Temple which is entirely carved out of the volcanic basalt mount.