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Mystic is, in and of itself, little more than a census designated place, it is not actually it's own municipality, it is located inside of the two neighboring towns of Groton and Stonington. That being said, there are several hotels just outside of Mystic in Groton that are less expensive because they are not inside of the mystic designated area, however they are still within 5-15 minutes away from mystic, tops and still on, or if not very close to on, the same road (US RT-1) that runs right through the heart of scenic Mystic. some of those hotels include the Howard Johnson on Long Hill Rd, The Super 8 Motel, Groton Inn and Suites, The Comfort Inn, The Hilton Gardens, the Flagship Inn (haven't been there but looked a little sketchy last time I checked), and this isn't really on the not expensive side for most of us, but for some, the Mystic Marriot (actually at the junction of I-95 and RT-117 in Groton). I would encourage you to look just outside of mystic for more affordable rooms, Stonington itself is a little less densly developed so I do not know of too many hotels there outside of Mystic.
I hope you have a great time in Mystic and find a very nice affordable room, and then fall in love with this place like I have and decide to stay here. I hope I could help!
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