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Nelson to Okanagan Valley - Lodging?

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We will be traveling from the Nelson area over Highway 6 down through the Okanagan Valley in mid-July. From Nelson, we only have a few days (Tue-Thu) to visit the valley se we arrive at Lake Chelan in the U.S by Thursday night. It looks like a bit of a drive from Nelson to the Okanagan, and we probably need to be at least in Kelowna or further south by Wed night in order to be in Chelan by Thur evening. Would it be better to try and stay somewhere between Nelson and Vernon Tue night and then further south (Penticton?) Wed night? Any lodging recommendations that won't break the bank (2 adults, teenager and small dog).

Thanks!

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