Please check the Hotels Tab above for a comprehensive list of stay options in Mussoorie. Luxurious options include the JW Marriot, WelcomHotel, and Fortune Resort. More budgeted options may be found (Read More)in the list.
Nainital, I believe, because you have more options to move around than to mussorie. Rather mussorie too have options like, kempty fall, dhanaulti, nag tibba and more around nainital you have options (Read More)like kausani, mukteshwar, binsar and more where you can stay and enjoy the serenity these are less crowded places comparatively to nainital and mussorie.