As you might expect from such a tourist hot spot, Otavalo hotels and hostels come in all shapes, sizes and price ranges, and, in particular, there are several budget and mid-range accommodations. If you're heading to the Saturday market the day before, don't be tempted to stay in one of the basic hostels on the Plaza de Ponchos; it may seem convenient, but it's noisy and prices aren't any lower. Most of the nicest hostels and hotels are located a couple of blocks or a quick, five-minute walk from the plaza.
Some of the nicest hotels in Otavalo are a few miles outside of town (see Lodging Around Otavalo). These relatively luxurious hotels, spas and haciendas tend to be a bit more expensive but there are a couple of options to suit backpackers, too. Haciendas are a particularly unique experience, with several exceptional options in the Lago San Pablo, Cotocachi and Laguna Mojanda areas.
Hotel Dona Esther|
A Dutch owned hotel, perfectly located in the center of town, near the central park - Parque Bolivar - and very close to the Saturday market. With a unique ambience - 12 rooms and a penthouse situated around a green inner courtyard.