If you want to stay in Palisade you might consider the Wine Country Inn at 777 Grand River Dr., or the more intimate Palisade Wine Valley Inn at 588 W. 1st St. This is a smaller B&B just north of downtown. Both include a complementary breakfast in your stay.
After reading about it in several articles, I visited the Spoke and Vine Motel. This is a 1950s motel that is now a 18-room boutique property. It opened in 2019 at 424 W. 8th St. It has a bar but no restaurant. However, complimentary, locally roasted coffee, tea and breakfast will be delivered to your room in the morning. I was very impressed with the design. I met a family who was staying there. They were very happy with their rooms. It is close to downtown and in a good location to visit the wineries and farm stands in the area.