I was there in the summer of 1970... drove from Boston to Guatemala in a volvo wagon to skin dive on an archaelogy project in the Peten. The hotel in Atitlan was spectacular, for $1/night... steak, french fries and beer all for 35 cents more. Ok, the steak wasn't that great (might have been goat for all I know) but still. And just up the volcano a ways the village of Solala, which has to be the greatest name for a little mountain village overlooking a beautiful lake ever.
Best, Bob