El Rancho
El Rancho is a large family home in Ilumà n, a village 6km outside Otavalo, which takes 15mins on a bus, and buses run every 15 mins. The family are indigenous Otavaleños who have lived here for generations and sold jewelery and weaving on the market for 15 years. Esthela is a great cook of traditional dishes, and usually prepares fresh food picked from the gardens of her nearby family. The views of volcano Cotacachi 4961m from the huge roof terasse are amazing (http://www.elrancho.edicy...), and volcano Imbabura 4610m is directly behind the house. It´s a great place for hikers, birdwatchers, or language students.
La Posada del Quinde
A bed and breakfast, previously known as Hotel Ali Shungu, is spoken of favourably by guests. Email reservations are accepted.