Hostal/Restaurante Antisana
The Hostal/Restaurante Antisana is about 200 m from the Terms and costs 17 $ per person includes a breakfast for a room with private bathroom and hot water. It is clean and quiet. Also there are two small pools with hot water in the garden.
There are a few hosteria's small family run hotels that are inexpensive. A few of them are located along the road from Quito to Papallacta. Ask the bus driver to stop in Papallacta and you will easily find one if you continue walking along the road.
Termas de Papallacta Hot Springs Resort
You can also stay at Termas de Papallacta Hot Springs Resort which is more luxurious and more expensive.