As you’d expect in a resort town, the only accommodation under $50 is in a dormitory. HI–Penticton (464 Ellis St., 250/492-3992, www.hihostels.ca [1], dorm $25–29, $58–96 s or d) occupies a 1950s white stucco residence close to the heart of downtown. Facilities include a kitchen, laundry, bike rentals, and an outdoor barbecue area. Check-in is 8 a.m.–noon and 5–10 p.m.
The least expensive of several lodgings on Lakeshore Drive, close to both the lake and downtown, is the 36-room Rochester Resort (970 Lakeshore Dr., 250/493-1128, from $129 s or d). All units have a kitchen and there’s a communal barbecue area for guest use. Rooms here in the winter go for as low as $60.
The six-story Penticton Lakeside Resort (21 Lakeshore Dr. W, 250/493-8221 or 800/663-9400, www.pentictonlakesideresort.com [2], $195–275 s or d) is an upscale, downtown property right on the lake. It has more than 200 rooms, an indoor pool overlooking the lake, a whirlpool, saunas, two tennis courts, a bar with a lakeside deck, and a restaurant.
Away from the water, Ramada Inn & Suites (1050 Eckhardt Ave. W, 250/492-8926 or 800/665-4966, www.penticton [3] ramada.com, $179 s or d) is a family-friendly, self-contained resort adjacent to an 18-hole golf course. Amenities include an outdoor pool, sprawling courtyard, playground, fitness center, restaurant, and poolside bar. The rooms are decorated in smart color schemes, are air-conditioned, and have no-charge wireless Internet.
Located in the village of Naramata, 14 kilometers (8.7 miles) north of Penticton [4], Village Motel (244 Robinson Dr., Naramata, 250/496-5535, www.villagemotel.com [5]) will bring back memories of a bygone era. The nine guest rooms are nicely decorated and open to landscaped gardens and communal barbecue area. Regular rooms are $90 s or d, or pay $145 for a kitchen unit. The motel is within walking distance of the lake.
For the atmosphere of an old-fashioned resort, it’s difficult to pass up the 
Naramata Heritage Inn & Spa (3625 1st St., Naramata, 250/496-6808 or 866/617-1188, www.naramatainn.com [6], $212–540 s or d includes breakfast). Dating to 1908, the hotel has been completely renovated, yet none of its historic appeal has been lost. The guest rooms have mission-style beds covered with plush duvets, bathrooms with heated floors and claw-foot tubs, and either a balcony or patio. Other amenities include spa services, a wine bar with live jazz on Friday evenings, and a fine-dining restaurant.
Links:
[1] http://www.hihostels.ca
[2] http://www.pentictonlakesideresort.com
[3] http://www.penticton
[4] http://www.moon.com/destinations/british-columbia/southern-interior/penticton
[5] http://www.villagemotel.com
[6] http://www.naramatainn.com