In Ephesus region there are 2 small towns where you can stay at Selcuk or Kusadasi.
Selcuk is a smal town close by the Ephesus ruins. There are enough boutique hotels and pension for staying. How ever if you wish to visit Ephesus and other places we highly recommend you to stay in Kusadasi. This lovely town is by the sea side. There are good beaches for swimming and especially night life is very interesting.