The bungalows at the Arboretum d'Antsokay, 12km east of the city, represent fabulous value as long you don't need to be in town. The superior bungalows are large, light-filled, and beautifully appointed with some original stone furnishings and they're lovely and quiet. The standard doubles are a little small and dark, but still decent value.
The restaurant (breakfast/dinner Ar15,000/40,000) is similarly excellent. Airport transfers cost Ar30,000.