Hotel San Jose, on South Congress Avenue

Transformed from an ordinary old-school motor court into one of the hippest small hotels in Texas, the swank yet reasonably priced Hotel San Jose is a favorite roost of artists, musicians, and scenesters. Built in 1939, the place received a stylish makeover in the '90s and has been a white-hot, eco-conscious gay-friendly Austin lodging choice ever since. The simplest rooms, with shared baths, run for under $100, top suites run for $330 and up. It's adjacent to Jo's Coffee Shop, along the wacky South Congress retail strip.