Let KAYAK do the searching
Based on KAYAK hotel searches, the most popular destination is Zermatt (95% of total searches to Matterhorn). The next most popular destinations are Breuil-Cervinia (3%) and Taesch (2%).
KAYAK users have found double rooms in Matterhorn for as cheap as $106 (Breuil-Cervinia) in the last 3 days. The average price is $518.