Half a block from the central plaza, Posada Aljoad (tel. 962/647-2025, US$12.50 s, US$17 d) has basic cement-floor rooms with flaking walls and springy beds—but they’re clean and have private bathrooms with hot water. In this part of Chiapas [1], that’s about as good as it gets.
Hotel Colonial Campestre (no phone, US$17–30 s/d) is all about the spectacular views of the green hills below. Too bad the sun goes down and all you’ve got are four walls to look at. Rooms are depressing at best—spacious though crumbling and not remotely appealing. At least there’s wireless Internet at the hotel restaurant and the recommended guide for the ascent of Tacaná Volcano [2] basically runs the place. Look for the bridge connecting the two sides of the hotel a couple blocks south of the central plaza.
There are a handful of mom-and-pop restaurants lining the terraced central plaza, all offering Chiapanecan and classic Mexican meals. Prices are very affordable (US$2–6) and hours typically run 8 a.m.–9 p.m. daily.
Links:
[1] http://www.moon.com/destinations/chiapas
[2] http://www.moon.com/destinations/chiapas/the-pacific-coast/around-tapachula/union-juarez/tacana-volcano