The best area to stay in Otavalo is typically right in the heart of the town, particularly near the Plaza de Ponchos.This central area is the main draw for visitors, especially for those interested in the famous Otavalo Market. The market, centred around the Plaza de Ponchos, is active daily but truly expands on Saturdays, spreading out into the surrounding streets like Quito and Bolívar. You'll find a good selection of hotels and guesthouses within a few blocks of the plaza, making it incredibly convenient for shopping and exploring on foot.For travellers who appreciate local culture and convenience, staying in this central zone is ideal. You're within easy walking distance of the market, local eateries, and the town's main square, Parque Central.