The Gran Hotel (tel. 03/2825-915), Rocafuerte 11-33 and Lalama, is an inexpensive option, with doubles for $26 (£ 17), including taxes and breakfast.
There are really no standout restaurants in Ambato -- most tourists have dinner at their hotel restaurant, and the restaurants at the hotels listed below are quite acceptable. If you want to venture out, you'll find good pizzas and Italian fare at Pizzería Fornace (tel. 03/2823-244), on Cevallos 17-28 and Montalvo; and decent Continental fare and local Ecuadorean cuisine at the popular Restaurante El Gran Alamo (tel. 03/2824-704), also on Cevallos and Montalvo.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.