We decided to stay in La Nucia as we had a day to spare and wanted to visit the Castell de Guardalest but the only hostal in that town was beyond our budget (although it looked stunning). On the way the way to La Nucia we visted Les fonts de l' algar - a pretty arbitrary picnic site with a small waterfall and very geared to tourists. Fortunately we visited in winter. It must be hell in summer!
Hostal Sunami is a great place to stay if you want to explore the area. Being late winter, La Nucia itself was pretty dead with very few restaurants open (a rarity in Spain). There is a little park in the town with a great view over the area but the town itself seems pretty run down.
The Hostal had a large room for the 3 of us (usually you get squeezed in to a room meant for 2) and modern fittings including TV (all Spanish), and a small balcony out on to the street. The bar below the room was a bit noisy but not worth visiting. We got good service there and we were happy with the price (55 Euros for one night). I suspect that you can get a better deal if you stay longer or book through booking.com.
The only down side (which is why only 3 stars) is that there was a broken shower fitting (had to use the shower by hand) and a blown light in the room indicating a lack of maintenance. Fix up these issues (which probably don't apply to the other rooms) and you've got a decent place to stay to explore the area.
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