In Instanbul I can recommend you the Cousollu Pasa hotel (for address refer
to the travelzine hotel database), in Denizli (close to the Pammukkale water
Subasioglu Hotel (***) - Tel. + 258 2649207; fax + 258 2649215; it is a good
and less expensive hotel.
In Cappadocia I stayed in Nevsehir (a town in the Cappadocia distrect), it
is quite nice but I think that you can find out a better hotel than this
one. The hotel is:
Seven Brothers Hotel (**) - Tel. + 384 - 2134979, Fax + 384 2130454.
Turkey is a inexpensive country so don't be afraid about hotels. In Cappadocia distrec I suggest you to rent a car in order to enjoy the secret corner of this zone, I'll not regret this decision!!
Ciao, Marco in Milan (Italy).