Hotel Monasterio
This is a city landmark in itself. It used to be a Monastery and it was converted into a very nice hotel. It is behind the Iglesia de San Jose. It is about 4 city blocks from the Parque de Caldas.
Hostel Trail
The backpacker's choice in Popayan since 2006 and rated considered by the rough guide to be "one of the best hostels in the country..." with private and dorm rooms, the fastest broadband internet in the city, FREE WIFI, Skype, DVD Collection, lockers with power points, hot water showers, laundry and self-catering kitchen and breakfast service. HostelTrail also runs most of the tours in Popayan including the downhill cycling trip to Coconuco. Wednesday night is curry night. 10,000 Pesos for a curry and a drink.
Casa Familiar Turistica
This is a smallish family run hostel with an excellent location right inside the historical center. The family seems mostly indifferent, neither helpful or rude. It offers two hot showers, kitchen use with a fee, laundry service and breakfast for COP$3.000. Price for a dormbed was COP$13.000 but has been rising.
Hotel Camino Real
This is a very good hotel located in the the city center. The food is unexpectedly sophisticated. The service is cordial, especially important for non-Spanish speaking guests. The decor reflects the Spanish influence, but makes you feel at home. The rooms are comfortable for the business traveler as well as for visiting families. Reasonably priced rooms. Located in the heart of the city.
Hotel Pass Home
This hotel is clean and the owners colombia family are very friendly. If you need a place for a tent, you can pitch here as well for COP $10,000 and you can use the kitchen for free. Free WiFi. Private rooms have cable TV with 106 channels in English, German, French, Chinese, Spanish, etc. You can also purchase a breakfast, lunch, and dinner package with local Popayan cuisine for COP$10,000 per day.
La Casa de Mima
Once a family home, now attended by owner. Very convenient location in a quiet downtown street. Rooms are large, most with private bathroom. Back garden, small swimming pool. Checkin can be arranged for guest convenience.