San Pedro  has a wide selection of hotels of all varieties and price ranges. There are a number of inexpensive hotels in the southwest quadrant of the city, within 10 blocks of the square. The cheapest are generally charmless, and cold water only, but those listed here were reasonably clean, while some of the midrange hotels are quite nice.
If you’re pinching your lempiras, take a look before you hand over your money, and keep in mind that it could be worth asking to see more than one room to find one with more light or less street noise.
While many of the newer upscale hotels are generally located out on Avenida Circunvalación, a couple of nice boutique hotels have joined the Gran Hotel Sula  downtown, and there are attractive midrange hotels in the center as well.
Many hotels are often fully booked, so for all but the absolute cheapest, it is a good idea to reserve in advance. No matter where you stay, take taxis at night to go out and come back.