Lodging: Hostal Valle de Amancer (Otavalo)
The main reason most people come to Otavalo is for the huge market. Saturday is the biggest day, but the market seems to go on every day of the week. Most tourists come on Saturday, bused in on a day trip, while many of the serious shoppers or locals coming to the animal market come on Friday night. If you arrive on Saturday to spend the night, there are more walk-in options for hotels. If, like me, you want to spend Friday night there in order to see the early-morning animal market on Saturday, you must book ahead.
With the hotel I really wanted booked up a few days in advance, I went with Valle de Amancer. This was definitely a backpacker hotel, with all young travelers and full of hammocks, luggage storage, and the usual amenities. It was a very cute, colorful place, and reasonably priced at $8 per person (double occupancy), but the place I wanted was only $5.50. They did provide towels and toilet paper, which was pretty nice, and breakfast is included in this price. You pay per night up front.
I don't recommend this place because of the noise problem. The rooms are all arranged around the common area with a fireplace and hammocks. Also, there are tables to eat or just hang out at right outside your doors. This seems open and friendly when you arrive during the day, and convenient if you want to play board games with your roommate, but at night, you constantly hear people talking.
One night, just a few people were at the tables talking, but it was so close to our door that I felt like they were talking in my ear. The second night, a giant group of British gap-year travelers were playing LOUD drinking games by the fireplace. It was awful, and against my nature, I eventually had to go out and tell them to shut up.
In addition to the noise from voices, the place is not built to withstand any sort of walking noise. We were on the ground floor, and anytime someone walked on the second floor, it sounded like elephants. Even though I knew people were not purposely stomping up there, the sound was awful.
Anyway, the place is a good deal with the breakfast (which is quite tasty), but there are cheaper places in town. If you really need a backpacker place where you can meet others, this is probably a good choice, but the noise was a deal-breaker for me. It was not worth the $8.