You could stay at Hacienda Cusin located about 90 minutes from Quito. Built in the 17th century and artfully restored over the past decade, the walled estate is a haven of whitewashed buildings, 10 acres of perennial gardens and its own stables. Guest rooms are furnished with rustic antiques, colonial art and regional textiles, and most have fireplaces, which the staff comes in and lights each evening. And all against the dramatic backdrop of the Imbabura volcano.
You can hire a driver/take a taxi, or bus and set out for the nearby towns of Agato, San Antonio and Cotacachi for, respectively, textiles, woodcarvings and leather.
Otavalo, located 20 minutes away from Cusin, is the largest and most important indian market in the country, if not the continent, it draws visitors every day of the week, but Saturday's the biggie.
A large, basic hostel built around lovely gardens. A variety of rooms and all meals available (home cooked). Hiking information can also be provided as can packed lunches for day hikes (probably not worth the cost though)
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