Bozeman Lodgin and Hyalite Question

Heading to Bozeman the weekend of the ice fest (Dec. 13th) and staying through Dec. 20th. I'm looking for some recommendations for lodging. Looking for something that is reasonably priced but also has a nice breakfast in the morning, and walking distance to some good food for dinner is always nice. 2nd question: How would a Toyota Prius do on the Hyalite Canyon rd? I know it depends on how much snow and other variables but could it do it? Other options would be a Subi or a 4Runner. Driving from California so the Prius would save a lot of $$$. Thanks in advance!