Casa Colibrí Hospedaje (tel. 504/793-7611, US$20 s, US$24 d) is a cozy hotel in a colonial building facing the park. Tastefully decorated with wood furniture and Guatemalan bedspreads, the two guest rooms have private bathrooms and share a pleasant common room with a sitting area and book exchange. The hotel also has a very complete folder on local hikes, guides, and restaurants.
Next door in another attractive colonial building is Hotel Colonial Yuscarán (tel. 504/3294-9399, US$13 s, US$16 d). The rooms here are much simpler, but clean and with TVs, fans, and private baths.
Apart-hotel Nolasco (tel. 504/793-7139, carlosnolascohn [at] yahoo [dot] com, US$35 one bedroom, US$41 two bedroom) has two brand-new fully-equipped (even a washer and dryer!) apartments a block from the square. The one-bedroom can sleep up to three people, and the two-bedroom sleeps up to four, plus sofa-beds that can squeeze in more.
A cheaper option is Aparta-hotel Ochoa (tel. 504/793-7199, US$18 s/d), three blocks from the parque central down the road to the right of the church. It has a tiny swimming pool, four basic but clean rooms, and one apartment that rents for US$26.
Hotel Carol (tel. 504/793-7143, US$7 s, US$11 d), right at the entrance to Yuscarán [1], is a last-resort choice with saggy beds and grubby bathrooms.
Links:
[1] http://www.moon.com/destinations/honduras/southern-honduras/department-el-paraiso/yuscaran