This comfortable and friendly inn was recommended by Frommer's and listed on a few websites (they also have their own: check it out here).
Inexpensive, very clean, and very friendly.
We had a spacious air-conditioned upstairs room with two twin beds, shower, sink, toilet, and television (no phone, but there's a pay phone outside the rooms). There's a beautiful patio with greenery, a small fountain, metal tables and chairs, a sleeping cat, and a few birds in a cage. Free coffee in the morning, and filtered water in a cooler.
The clientele appeared to be mainly European.
I really liked it here - the only downside was that it's a few blocks from downtown, and a bus ride to the beach. The area may be sketchy at night - we were only at the hotel for one night and took a cab back, so it's hard to tell.
There is a bus stop in front of the hotel (infrequent bus) and other bus stops a few blocks away (with very frequent buses).