Sabai Phyu | No. 58, 81st Street
The rooms at Sabai Phyu are a bit tatty, but the location isn't bad and the staff are friendly. Free breakfast is served in the rooftop restaurant. Listed in Lonely Planet
Rate: $10.00 *with AC
New Park Hotel | Thiri Pyisaya Qtr., Nyaung Oo.
The New Park Hotel is much nicer than its 'sister hotel' in Mandalay, the Sabai Phyu. Rooms have porches and are cozy with wood floors and antique-style furniture (note: the cheaper rooms in the back are not as nice). Bicycles rent for $1.00 and horse carts to the temples can be arranged for 6,000 kyat ($6.00 +/-) per day. This is one of the best hotels (for value) we stayed at in Myanmar.
Winner Hotel | Pyi Taung Su Road
The cheap rooms at the Winner Hotel are in the basement, but they're alright – the only disadvantage is the lack of a view. This hotel is run by a friendly Chinese family and is the place to arrange a trek with Ronald, the best guide in Kalaw (a 2-day trek is $14.00). I would stay here again just for the awesome shower (the most powerful shower and hottest water in the world). Listed in Lonely Planet
Rate: $12.00 *with TV