Ecofriendly Hostal Pakay is surrounded by woodland, and a stay here is more like a jungle lodge experience than a town hostel experience. Wooden rooms are clean and tidy (with private or shared eco-toilets), kayakers and backpackers love the chill-out terrace, and the on-site tour agency is increasingly renowned. Much of the breakfast fruit is grown in the lush grounds.
It's a steep 20-minute hike up from the bus station so get a taxi here.