Public transport (Hiace van) is usually available from Abbottabad to Balakot, but it can take one to two hours (sometimes even longer) for all the tickets to be sold. Going to Mansehra is advisable (~45-50 minutes). If you come to Abbottabad on Daewoo, a Daewoo van shuttle can take you to Mansehra. Otherwise, most other bus/coach/coaster/van services from Rawalpindi and Lahore also go to Mansehra. The road is good and you can even hire a taxi (Mehran is cheapest). Depending upon the ride, it can take 60 to 90 minutes from Mansehra to Balakot(~40 kms.).
All the established hotels in Balakot were destroyed in the 2005 earthquake and were not allowed to rebuild. During the tourist season there are some tent hotels available, for emergency stay only.