Hotel La Esperanza (tel. 504/763-2106, US$15 s, US$24 d with fan, US$21 s, US$35 d with a/c), near the gas station three blocks west and two blocks south from the parque toward the exit to El Paraíso, has about the best low-price rooms in town, distributed around a one-story interior courtyard and all with TV and fans. Parking is available.
A spartan but clean option is the Hotel San Juan (tel. 504/763-2655, US$11 s, US$22 d), three blocks west and a block and a half north of the parque. The largish rooms have TVs, fans, and hot water. The Hotel Apolo is best avoided unless you’ve run out of money—a grimy single room with shared bath is just US$5 (you get what you pay for).
On the highway bypassing Danlí [1] between Tegucigalpa [2] and El Paraíso is Hotel Granada (tel. 504/763-2499, US$30 s, US$41 d with fan), a one-story, motel-style building favored by visiting businesspeople, with comfortable rooms with cable TV and hot water. The hotel has a restaurant.
Links:
[1] http://www.moon.com/destinations/honduras/southern-honduras/department-el-paraiso/danli
[2] http://www.moon.com/destinations/honduras/southern-honduras/tegucigalpa