El Agua de Hierro
Is under new managementsame family as former owner, and it's actually a nice place to stay, with swimming pool, jacuzzis, sauna, steam room, bar, all the amenities. dorm beds for $7, private rooms starting at $12. long-term rentals available for $150/month. you may see reference to a terrible saga of the former owner slipping horse tranquilizers into female resident's drinks, then using his master key to get into their rooms at night and raping them. this repeatedly happened over the course of many years, it was even mentioned in the 2004 lonely planet guidebook. see this article (http://www.libertadlatina...) the hotel used to be named hostal ruinas de quinara. as of early 2009, this man has finally been run out of town, and the police at last have a warrant out for his arrest.
Hostel Le Rendez-Vous
Calle diego vaca de vega 06-43. owners are a french couple isabelle and serge. beautiful cabanas around a garden. very clean, very nice, and lots of hot water. breakfast is included: home-made bread, eggs or fruit salad, fresh fruit juice, coffee, tea, hot chocolate. 1 person is $15 per night, 2 people are $12 per person per night, and 3 people are $11 per person per night. they have a large collection of dvds with a portable tv/dvd player, hammocks, information booklets on vilcabamba, ecuador, and peru, hiking maps of the area, and wifi $4/day. (http://www.rendezvousecua...)
HosterÃa Izhcayluma
Owners are 2 german brothers, peter and dieter. located about 2km south of town, overlooking the valley. different kind of accommodation, surrounded by fantastic tropical gardens. dormitory bed for $10, double room for $12-15 p.person, single room for $19. generous buffet breakfast is included: home-made bread, eggs or crepes, fruit salad with home made yogurt and granola, fresh fruit juice, coffee and tea as much as you like, etc. private cabaã±as also available for more. a swimming pool and spa services massages, facials, etc. are available. several self guided hiking trails are offered in the vilcabamba area with excellent maps based on air fotos. the panorama restaurant with great views is also open for lunch and dinner. they have a large collection of dvds which can be watched, last one starting at 5pm. on-site bar with a pool table and ping pong table opens at 7pm guests only. there's a community of international travelers to be found. wi-fi connection for free. this place is one of a kind and definitely worth a visit, even if only for a meal with the incredible view. however, service can often be on the slow side- you can wait half an hour for a drink from the bar. (http://www.izhcayluma.com/)
La Florida
Long-term rentals only. basic but decent one-bedroom duplexes with private bathroom and kitchen for $150/month. rooms with private bathroom and shared kitchen for $100/month. room with shared bathroom and shared kitchen for $80/month. located across the street from agua de hierro.
Las Margaritas
Probably the best value hotel in town. Nice modern rooms with cable TV and private hot water bathrooms, swimming pool and breakfast included, for only $15 single per night!