This is a bit fancier than your typical backpacker hangout, though still a guesthouse. A bit more expensive too, the room was about $24 for two, breakfast included. It's a little south of town, a bit too far too walk unless you really like walking. But still on the main road through Luang Namtha.
Nice hallway with wooden floor led to the rooms on the second floor. Rooms were nicely furnished, not luxurious, but rustic-looking furniture, lots of wood. Shuttered windows that in our case opened onto the shared balcony at the front of the guesthouse. Bottle of drinking water included. There's no separation between the shower and toilet, same floor, but it's a big bathroom.
The ground floor is a big open-air, covered restaurant that's a nice place. It's near the main road, but blocked by bushes and there's so little traffic, it's fine. Breakfast served here, I don't know about other meals. There was some sort of Internet availability in a separate building, but I didn't check it out to see how well it worked.
This is a good choice, but you'll have to make your way to town to find other restaurants and tour agencies.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC