The best area to stay in Baños is right in the town centre.
This central area is where you'll find the most convenient access to everything Baños has to offer. The main square, Parque Central, is a good point of reference, with most hotels, restaurants, and tour operators clustered around it and along the adjacent streets like Calle Ambato and Calle Eloy Alfaro. It's very walkable, meaning you can easily stroll to dinner or arrange your next adventure.
Couples looking for a relaxing and enjoyable escape will appreciate the central location. You'll be within easy reach of the thermal baths, great for unwinding after a day of exploring, and have a wide selection of restaurants for romantic evenings. Many hotels in this area also offer lovely views of the surrounding mountains.
For solo travellers, staying in the centre is ideal for meeting other adventurers and easily joining group tours. You'll find plenty of hostels and hotels that cater to individual travellers, often with communal spaces.