There are many budget hostels to be found throughout Ecuador. Often the hostels in smaller towns are actually private homes that welcome travellers. As with most things, locals can help you find an excellent hotel at a very low price ($6-14). Again, large groups can haggle for lower prices. Air conditioning is an amenity that often comes with an extra charge of a dollar or two per night.
Ecuador also has a growing number of eco-lodges, including many renovated traditional haciendas.