Most gringos stay in the New Town when visiting Quito and that alone should tell you to stay in the Old Town. If all you care about is drinking/dancing your nights away then by all means follow the masses but if you want to be where all the city's great sights are and have a more authentic Ecuadorian experience then the Old Town is for you.
Unique Qualities: There are now more choices in the Old Town, some that are much like their counterparts in the New Town and teeming with gringos but this great hotel isn’t one of them. It was probably the best value room we had on the entire trip with functional, good size clean rooms, a helpful staff though appropriately that help will come in Spanish, and a great central location. It was safe and generally pretty quiet though lower floor rooms get some noise from the lobby. Also avoid street side rooms due to traffic. The interior rooms have windows that open to either a courtyard or the more quiet rear of the building. Rooms with private bath are only 7 dollars per person and those without are only $4 per person! We splurged on the private bath but the common facilities were clean and convenient enough.
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Theme: Hotel
Comparison: less expensive than average
Prices: less than US$20
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Address: Flores 332
Directions: Right in the Old Town in a fairly quiet section that is safe to walk around even at night.