On the Bolivia side of Lake Titicaca hotels for any wallet aren’t hard to find. Prices are generally lower in Bolivia than in Peru, and the widest selection of accommodations is in Copacabana, a lakeside pueblo not far from La Paz. There are plenty of decked-out luxury hotels with great views, but even budget travelers can find clean, cozy hostels close to the lake.
Isla del Sol has a few eco-lodges, including the popular Ecolodge La Estancia. There are a few hotels and hostels in Yumani, a small town on the southern end of Isla del Sol — just make sure wherever you stay on the island has enough hot water for all its guests.
For the most part the other islands don’t have any accommodations aside from private residences, but it is possible to arrange a homestay with a local family for a night or two. These are best arranged through tour operators who can guarantee the safety and quality of such arrangements. The adventurous travelers can also camp on smaller islands; just make sure to respect private property.
Whether you stay in a five-star hotel in Copacabana or a five-person tent on Isla de la Luna, make sure you have plenty of warm blankets. The mountain air can get quite chilly at night.