Most hotels in Santa Bárbara [1] are on the lower end of the price scale, and comfortable rooms can be found without difficulty.
Gran Hotel Colonial (tel. 504/643-2665, US$29 s or US$34 d), 1.5 blocks from the square going toward the hills, has 52 clean rooms spread over three buildings. Prices range depending on the size of the room and whether or not it has a TV and air-conditioning. The more expensive rooms come with complimentary breakfast across the street at Cafetería Colonial [2].
Another option is the Hotel Ejecutivo (tel. 504/643-2206, US$16 s, US$29 d), 1.5 blocks north of the park. The rooms have tiled floors and are surprisingly cool, even on hot days, along with fan, TV, and private bathroom. The hotel closes its doors at 10 p.m., unless you let them know if you’re going to be out late. The upstairs rooms, with their front balconies, are nicer.
For less money, neighboring Hotel Ruth (tel. 504/643-2632, US$13 s, US$16 d, another US$8 for a/c) has slightly dingy rooms with fans and private bathrooms.
Similar in price to Ruth but quite a bit nicer is Boarding House Moderno (tel. 504/643-2203, US$13 s, US$18.50 d), one block southeast of the square. The large, quiet building has tidy rooms with hot water and private bathrooms, and with air-conditioning for about double the price. Some rooms are pretty dark, but you can always ask to see more than one. The front desk sells sodas and fruit juices, and even has a little gift shop.
The nicest rooms around are outside of town, near the exit to Juanjuco, where the Hotel Antony (tel. 504/643-0486, US$32 s, US$42 d) opened in early 2009 (same owners as the Colonial). Amenities include a pool, restaurant, and Internet access, and fancier rooms (US$47 s/d) have Jacuzzi tubs, plasma TVs, and mini-fridges. As of writing, the hotel was open for business, but had not yet been officially inaugurated, and prices were expected to go up a bit after inauguration.
Links:
[1] http://www.moon.com/destinations/honduras/central-honduras/santa-barbara-and-vicinity/santa-barbara
[2] http://www.moon.com/destinations/honduras/central-honduras/santa-barbara-and-vicinity/santa-barbara/food