I arrived here mostly by chance. When I was arriving to town by bus, I commented to my bus mate if he knew some hotel here and he told me he lived in fron of 2, the Alif Paradise and the Lalibela Hotel. As the first was the only one I had in my LP guide, he took me to this one first, but it was fool. So we tried in the new Lalibela Hotel and it was a good choice.
It is a local hotel with rooms around a central patio with a tiny garden. Hot (sometimes) and cold shower, WC ensuite, all double rooms (I used it as a single). It also has a basic restaurant and seats outside at the patio.
Very friendly stuff, they kept my rucksack the last day when I was leaving.
Unique Qualities: 35B (3,5 USD) the room, probably cheaper if you bargain.
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Theme: Hotel
Comparison: least expensive
Prices: less than US$20
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Address: In the main road, by the Tourist Office
Directions: In the part of Lalibela that is downhill.