There are many great midprice hotels in San Pedro , including a couple that also offer cheap dorm-style accommodations.
Certainly the funkiest option in this price range is Tamarindo Hostel (9 Calle NO, between 10 and 11 Av., tel. 504/557-0123, www.tamarindohostel.com , info [at] tamarindohostel [dot] com), in the trendy northwest section of the city, not far from the Guamilito Market  and a number of good restaurants. Situated behind a security wall, Tamarindo, with its tidy little front garden, tropical birds, and colorful murals, is a virtual oasis.
The downstairs common area includes a clean full kitchen with a stove and microwave, a TV lounge, and a large dining area with plenty of books, games, and tour brochures as well as Internet access (for a steep US$2/hour). Upstairs there are two dorms with bunk beds, private bath, warmish water, TV, fan, and air-conditioning for US$15 per person—these dorms are the best place in town to stay for that lively backpacker vibe.
There are also four private rooms with bathrooms, warmish water, air-conditioning, and cable TV (US$45 s/d, US$60 t), but there are nicer places to stay if you are springing for a private room. The second-floor balcony hammocks make a nice place to relax, and lockers are available to stash your valuables. Owner Juan Carlos can help with pickup service from the bus terminal or airport.
Another clean, well-maintained hotel is Hotel Real (6 Av. SO, between 6 and 7 Calles, tel. 504/550-7929, US$17 s with fan, US$25 with a/c, US$28 d with a/c), decorated with plants, hanging Lencan pots, and peach paint. Rooms have TVs and private baths but, surprisingly at this price point, no hot water. Internet is available in the lobby for US$1 an hour, and breakfast is just $2, served until 10 a.m.
Hostal E & N (15 Av. NO at the corner with 5 Calle, tel. 504/552-5731, hostaleyn [at] amnethn [dot] com, US$35 s, US$38 d) has two buildings on the same block, both with clean, simple rooms on a nice street in the northwest section of the city. Parking and breakfast are included, rooms have wireless Internet and air-conditioning, and the place is popular with groups, so try to book ahead.
Hotel Posada Colonial (6 Calle SO between 7 and 8 Av., tel. 504/550-2763, posadacolonial [at] hotmail [dot] com, US$18 s, US$26 d) is a great little hotel with a nice atmosphere. Rooms have small tables, clean bathrooms, dark wood furniture, and wireless Internet. Free Internet is also available in the lobby. There is a parking lot, plus a small cafeteria next door. Laundry service is available for US$1 per item. The one drawback? It’s not quite as centrally located as some of the other hotels. On the other hand, it’s only a block from the groovy bar Klein Bohemia .
Hotel Maya Copan (5 Calle NO, between 8 and 9 Av., tel. 504/552-1516, www.hotelmayacopan.com , US$37 s, US$45 d) has a good location just a block from the Mercado Guamilito . Some rooms are sunnier than others, and while the bathrooms are clean, a few have stinky pipes, so it can be worthwhile to take a look at more than one room. All are tidy, with air-conditioning and TV. There is purified water and Internet (US$1/hour) in the lobby, and parking is free.
The former Hotel Ambassador has been totally renovated and turned into the Hotel Plaza Palmera (7 Calle SO between 5 and 6 Av., tel. 504/557-6825, US$24 s, US$29 d). Although the location is a bit off the beaten path, the rooms are excellent value, with TV, air-conditioning, and chests, dressers, and headboards in dark carved wood. Some rooms have private balconies, while others share a balcony that overlooks a grassy pedestrian meridian on Avenida Los Leones.