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.
I just read that the Spoke and Vine Motel, 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.