I would recommend the Suba Palace which is right behind the Gate of India. It is not the cheapest (around 5000 Rs) but at least it is decent, something which is nowadays hard to get in Mumbai if you don't want to spend lot's of money. I stayed there two years ago on a couple of occasions.
All the best for your trip,
(Maitreya) Borayin Larios
My wife will be in Mumbai in late January for three days, on her way to another destination. She wants to spend 3 nights in Mumbai fairly near the Gateway of India in order to visit Elephanta and recover from jet lag. The Taj Mahal is quite expensive, and I'm wondering if anyone has other suggestions.Appreciate any help,Al Collins