http://www.hotelloslagos.com/Index-e.htm
We got a two-bedroom cabin (for three) here for about $70. I loved this place. The cabin was two bedrooms with air-conditioning, kitchen/dining area, and bathroom with shower and tub. The hotel grounds are gorgeous, from the Jacuzzi in the courtyard to pools and slides to the hot-springs pool with a swim-up bar.
Most impressive is the hotel's proximity to the volcano. You can't get any closer. One tour guide told us that the hotel was, in fact, "dangerous" because it is too close to the volcano if there is an eruption. (The hotel has walking trails that are now closed due to an eruption that killed hikers in the late '90s.) But taking that risk... it is a great/beautiful spot with its own observatory and tour desk.
A taxi to Fortuna (town) for dinner or drinks is an easy, short ride for about USD$2.50. We enjoyed a couple restaurants and small stores there. The hotel's breakfast buffet was wonderful and large.
It was a surprise that the rooms did not contain clocks, the phones did not work, and the TV reception was nonexistent. But this is one hotel where you feel free and relaxed just sitting outside on a bench. It's a very peaceful place. They have a spa, which I did not use, their own canopy tours, and a tour desk which arranged our day trip to Cano Negro.