Sinchula Hotel
Preferred mainly by local travellers, this oldish establishment located next to an old peepul tree has clean, tiled rooms with hot-water bathrooms, air-con, a good restaurant and a rooftop terrace bar.
Phuentsholing hotels and hostels
The following hotels are all TCB-approved, and have rooms with attached bathrooms. Apart from approved hotels, Phuentsholing also has numerous small hotels with a limited number of air-con rooms, they fill up quickly with Indian businessmen and travellers. The main hotels all have good restaurants, tossing up palatable (and predictable) Indian, Bhutanese, Continental and Chinese fare.
Hotel Anand
You can get a double with air-con for Rs 1200.
Central Hotel
It's central, that's for sure. But that apart, there's little else that can be said about this standard-issue place with air-con. Oh, and there's plenty of noise from the streets below.
Hotel Namgay
Overlooking the Zangto Pelri Lhakhang, the Namgay is a step down in quality but is still pleasant, with air-con, tropical plants in the lobby and money-exchange services.
Lhaki Hotel
This is your best bet in town, but book in advance as most tour operators prefer to lodge their tour groups here.
Hotel Kasturi
Next to the immigration checkpoint.