There´s absolutely no need to sleep in Oswiecim to visit the camp. The town is easily accessed by bus from Krakow and you´ll certainly have more options there (not to mention restaurants and other activities).
For a nice tip of accommodation in Krakow, please check my Krakow page.
I travelled through Eastern Europe for 10 days staying at pensions and small hotels which were fine. I planned on visiting Auschwitz Concentration Camp and Krakow but wanted an early start on the Camp so I picked this hotel being so close to the Camp and all others being full. As we aproached by car this very ugly structure blocked the sunset over the railroad, and the nightmare started. The elevator had to be pranked open. We, a family of 4, were allocated to the 5th floor with no corridor lights. The room with 4 beds had really old furniture from say 50 years ago, a real bad paint job, and it smelt bad. It happened to be the hottest weak in around 2 centuries in Poland which didn't help either, and we couldn't leave the windows open on account of some real hungry mosquitos. The bathroom was even worse as it had no tiles, the water came out brown, then yellow... the towels were ridiculous. My kids strated crying and my wife nagging... I was tired and sticky and all I wanted was to go visit Auschwitz the next day. Hell the poor Jews god worse treatment then this ... The trains wretched all night and I hardly got any sleep. We eventually survived this Gulag hotel and went on to our visits and came back home to Portugal without a disease (I took antibiotics just in case).
Directions: Next to Oswiecim railroad station
The Hotel offers single, double, triple rooms as well as suites. There is a restaurant which serves dishes of Polish and international cuisine and a drink bar with variety of drinks offered.
Price list (2002) per room/night in EURO (breakfast included):
Single room: 30;
Double room: 49;
Triple room: 62;
Unique Quality: The best is location: only 200 m (218 yd) from Oswiecim railway station, 2 km (1.2 mi) away from the centre of the town and 3 km (1.9 mi) away from the main bus station.
THE MUSEUM Auschwitz-Birkenau former Nazi's concentration camp is located 2,5 km away from the hotel and it's easily accessible from the hotel by city bus.
Directions: 200 m north of Oswiecim Railway Station
To be honest, Oswiecim has not many accommodations to choose, although it is one of top places to visit in Poland. Most tourists come to Oswiecim by bus in organized groups and they rarely sleep here.
There is larger variety of accommodations in my hometown Tychy, city of 135,000 citizens located 20km (14mi) west of Oswiecim. Details in my Tychy page.
Dabrowskiego 119, Oswiecim
16 Powstancow Slaskich Street, Oswiecim
ul. Zajazdowa 2, Oswiecim
St.Leszczynskiej 16, Oswiecim
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Address: 16 Powstancow Slaskich Street, Oswiecim, 32-610, Poland