Near the plaza with the mayor's offices and church. We walked out for bakery goods for breakfast in the morning, and loved Otavalo. Lots of traditional dress and kids in their school uniforms. Feels a lot safer and more relaxed than Quito. Lots of places don't heat the rooms, and if you need extra warmth, take a down throw along. The hotel has a pretty courtyard.

As you may have surmised from the title of this brief article, the main point about this hostal/hotel is where it is situated: four blocks from Poncho Plaza - site of a daily market and the truly superb Saturday extravaganza, four to five blocks from the indigenous Saturday animal market, two blocks from a pleasant park, and, within a radius of a block or two, some pretty good restaurants. But you don't have to leave the premise to dine, as there is a restaurant within serving breakfast and dinner,and a small interior courtyard where one can take a self-catered lunch gleaned from the nearby convenience store ( the one vending Argentine and Chillean whites ) or from the small produce market adjacent the train station. There are also a few Bank ATM's in the vicinity; just what you'll likely require after a few turns through the Plaza. Arrive on a Friday, the night before the Saturday market and you can expect to be serenaded late into the evening by a Pan band. The house plan is colonial, the rooms rising aove around interior facing balconies. The rooms are spartan but clean and the price is modest for the location and service. There is a locked front gate, the interior accessed by a bell, providing that extra security all travelers require in their repose. Check it out; it's a budget travelers best!

Hostal Dona Esther is in the perfect location, in the heart of Otavalo, near Plaza Bolivar. You can walk everywhere easily. Stay a day or two or three and enjoy it as a base camp for day trips to Cotacachi, Ibarra, and to see the surrounding wonders of nature. It is clean, comfortable, and has thoughtful amenities like candles in the rooms. Breakfast is served daily, dinner every night but Monday if I remember correctly. The produce is from an organic farm in Ibarra, and the recipes are the hosts. Try the traditional Ecuadorian Andean potato soup with cheese and avocado (Locro di Papa) and a local liquor called canelaso. The prices for lodging and food are reasonable; perfect for the budget traveler looking for an authentic, reliable Ecuadorian experience. - Wendy Jane of West Hollywood, CA

Quaint little hostel with rooms that surroound an out door courtyard. Very charming place.
On site restraunt had fabulous home cooked meals and a pizza oven for the pizza lover.
Stay and meals were quite reasonable and hostel is within wlking distance to the market.
I would reccomend this place highly.