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As I approach Chiang Mai from the superhighway coming from Lampang, I catch sight of a board attached to the highrise Pangsawan Place offering rooms at Bt350 a night including breakfast. Even in the northern capital, where a glut of accommodation has forced prices down, this sounds like excellent value (especially as it's about the same amount as I pay for my favourite pizza at The Duke's Restaurant).

In the lobby, the receptionist tells me only two rooms are still available for the night though Pangsawan usually offers a range of options, from standards to suites, at prices varying from Bt350 to Bt1,200.

First impressions are favourable: despite the low prices, this seems like a proper hotel with a lobby area, free internet corner and a restaurant.

Guests do have to walk up the stairs to get to the one and only elevator so it's not for the mobilityimpaired.

The standard rooms are on the second to fifth floors and most are twin, with only the corner rooms fitted with double beds. The next level up is the superior room, which cost a very reasonable Bt450. Everything is more or less the same as in a standard one, except you are on the sixth and seventh floors, and further away from the noise of the superhighway. Pay Bt550 a night and you move up to the eighth floor and a more spacious room. Those who pay Bt1,200 a night for a suite get to stay in a corner room on the sixth, seventh or eighth floor with wide and high windows offering the best view of Doi Suthep. Suites are also available to those wanting to pay a monthly rental of Bt22,000.

All rooms are clean with a comfortable bed, large wardrobe, mini fridge, basic shower with hot water, toilet, plus telephone, free wireless internet and cable television.

The view of the highway is not fantastic, but at least I see the pagoda of Wat Jed Yot on the other side of the road.

I wake early the next morning to bright sunshine that the thin northernstyle cotton curtains do nothing to shade and to the chatter of tourists in the corridor outside my room.

Breakfast is served on the ground floor from 6 to 10 and is a Thai buffet with a choice of steamed and fried rice, pork rice soup plus five other dishes. There's also a toaster, with bread, butter and jam alongside, plus plenty of free coffee and tea.

Two flatscreen desktops in the lobby are available to guests free of charge while those with their own computers have to get their password from the reception daily.

Laundry service is available and is very reasonably priced, at between Bt10 and Bt30 apiece.

Located just 25 metres off the superhighway, Pangsawan Place is more suited to travellers with their own vehicles than pedestrians. It can be accessed by a small back road that leads you to the Santitham area, as well as via the Huay Kaew and Chotana intersection.

With many people forced to tighten their economic belts, budget hotels are now all the rage. Pangsawan Place is a good find, offering good value for money in the northern capital.

AT A GLANCE

High Point: Rooms are new and clean and the location is fine, near enough to both Nimmanhaemin and Huay Kaew roads. You can even walk if you have to.

Low Point: Everything is kept to the basics, meaning there are no facilities like swimming pool, gym or spa. The soundproofing could do with improvement too, otherwise those wanting to sleep late will be woken by people talking in the corridors.

Find it: 9/10 Tevarit Road, Tambon Changpuak, Muang District Chiang Mai 50300

Pay for it: Rates range from Bt350 to Bt1,200 a night including Thai buffet breakfast. Prices will double on New Year Eve.

Book it: The hotel has no website. Call (053) 255 249 50 for reservations.