I recently stayed at the Nyore Hillside Retreat (http://nyoreretreat.com), which is near Kinoni, 16km along the Mbarara – Kabale Road and only 5 mins off the main road.
This amazing place opened in 2014 and is already establishing itself at the best place to stay anywhere near Mbarara. Beautiful well equipped Bandas and also willing to provide tents for those on more of a budget (or bring your own tent). Lovely communual lounge/bar area for relaxing and restaurant seating on the balcony looking over wonderful valley views. The restaurant is also available for day visits and there are some lovely hill and valley walks around the local area.
The service is wonderful and the management is determined to do all to make sure visitors feel welcome and relaxed.
A place waiting to be discovered.