Apartamente Lifau we found closed for renovations. By the look of it the same standard as hotel Rao.
If neither hotel should be of your liking, the remaining option is to ask around for people who offer homestay.
There are only two hotels in Oecusse's capital Pante Makassar, which would be classed as 'Melati' in Indonesia. One of them was being renovated, so we had little choice but to stay at Hotel Rao.
Here we got a room with a single bed for USD 15, they added a mattress on the floor for USD 5, take it or leave it. During daytime no electricity and therefore also no running water - well, that they cannot help.
The breakfast was ok, but this kind of accommodation should have cost in Indonesia USD 6 at the most.
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