I am just back from a trip to Mahabaleshwar (23 Oct 2004) and had stayed for a day at Five Hills. I had stayed in a Deluxe for Rs. 575+taxes.
Rooms: Small and old. There is maintenance going on everywhere. The flush in the toilet was broken and the hot water geyser never worked. On complaining that the geyser was not working, I was told that the geyser will take some time(30 mts) to heat the water up....however it never worked.
Service: Nothing great. If you go down to the lobby and talk things get done much faster.
Bookings: There were rooms available as I was there during off-peak time so I cannot comment on this one.
Food: Did not have any food there cannot comment.
Travel: You have to call for a taxi from the junction and then travel around.
All in all...I expect more value for Rs. 600 plus.