Dharmastala being a piligrimage center, do not have any private hotels or resorts. The nearest good homestay will be Stream of Joy or you can find some basic hotels in Ujire which is around 8 kms. You can also alternatively stay at Kukke Subramanya. Apart from these options, there aren't any other good 3 or 4 star hotels in dharmastala. Some of the piligrims would even stay at Mangalore which has more options for Hotels and Resorts.
Dharmasthala is a Kannada village which is commonly referred to as Indian temple. It is located on the banks of Nethravathi River. It is basically found surrounded with forests and placed in the midst of hills. People of this village are very kind and believe in charity. Pilgrims are often found here and a golden Shiva lingam draws them. It does not matters to which cast and creed they belong to, but what matters is Dharmasthala attracts them all.
"Anna Daana" or free food is offered to the devotees who come here. In fact, this is one of the most remarkable features of this region. Religious tolerance is visible here by the activities those are carried out. A local deity of Dharmasthala had a supernatural power, who was responsible for bringing the golden lingam here. He was known as Annappa and was employed by Heggade family.
People of Dharmasthala have truly shown the significance of "dharma" or the "Right Conduct" by practicing it. Education is the prime focus of this region of Karnataka. Communal harmony is observed here and "Sarva Dharma Sammelan" is conducted here. Shri Manjunatheshwara and Shri Ammanavaru are listed among the famous temples of Dharmasthala. It inspires people by its religious tolerance.
There is an interesting KSTDC Package Tour operating to Dharmastala and other temple towns of Karnataka. Check it out here.