Part of a community tourism project, Inti Sisa (the Kichwa words for sunflower) is a welcoming spot that's tastefully decorated and filled with local artwork and crafts. There are dorm rooms with thick mattresses and bright private rooms with exposed wood and minimalist styling. Lunch ($8) and dinner ($10) are served in the colorful dining room.
Inti Sisa runs an early childhood education program in town and offers awesome community tours ($40), horseback trips ($45), Spanish classes ($10 per hour) and cooking classes ($12.50). Ask about volunteer opportunities. Note that there is a green-and-yellow Inti Sisa educational center in town too; this is not the lodging, which is further uphill.