I would recommend the Bulkley Valley Motel on Hwy #16 on your left if driving from Smithers to Terrace. Clean and affordable. The 28 Inn is a new motel directly across the street. I haven't stayed there so I can't give a review. Be prepared that there is limited places to eat dinner in Hazelton after 8p.m. Rob's Restaurant on Hwy #16 is probably your best bet.
If you plan on staying in Smithers it is highly recommended to book something in advance. The Fireweed Motel is cost efficient, centrally located to restaurants, and clean.
The best place to stay in the valley for the do it yourself angler is Two Rivers Lodge in Telkwa. They rent small, side by side cabins, situated on a good steelhead run on the Bulkley River. And the owners Lawerence and Jane a two of the nicest people you will ever meet.