Hostal del Lago
Ask for Mr. Lico. This place is like your home at Atitlan because you can cook your own food if you don't want to spend at restaurants. You have access from the street to the lake and you can park your car in the backyard of the hostel. There is a temascal mayan version of sauna 30 feet near the lake so you can take a bath and then jump to the lake from the private dock. Nowhere else you will be able to do this. Also it is very quiet, far enough from public noise. Bring your book and read alongside the lake or in one of the hammocks with lake view.
Hotel Aaculaax
At this little ecolodge each room is unique, built into the steep hillside, and decorated with recycled glass and murals. Great soft bedding and excellent beds even in the budget rooms. They only take reservations for the high end rooms from $65 and up. It is the most luxurious and interesting place to stay in San Marcos. Great massages by Stephanie on-site as well. Excellent restaurant for breakfast.
There are many hotels that provide spa or yoga packages to ensure that relaxation is established. These hotel packages may include yoga sessions, meditation hours, and even massage and spa services.
The "Unicornio" hotel is a mere three minute walk from the beach. It has a very cozy feel but is also one of the most luxurious hotels that San Marcos has to offer.
Hostels are also another option for stay in San Marcos. The hostels have been described as 'original and cozy'.
Pasaj Cap is also another option for board while staying in San Marcos. I would recommend this option for those travelers traveling in a group of maybe three or more. Pasaj Cap offers travelers to rent out actual houses right outside of San Marcos. The houses are very beautiful and private. From what I have read on blogs, the window are described as 'open' where the "scenery is in your room". From these private homes, it is a twenty minute walk to San Marcos. On the way there the walk is down hill but on the way home it is uphill. I recommend wearing sneakers so that you don't slip on the rugged terrain.