Guesthouses in the city center of Luang Prabang can get expensive during the high season; while walking around i was quoted prices around 30 USD in quite average-looking places.
The Salakphet Guest House offers private rooms with private bathroom, air conditioning, and TV for 100,000 kip (about $12 US). I believe they also have dorm beds but I don't know the price on those.
The rooms aren't the most charming, but they're clean. There's no breakfast or outdoor seating area but it's right in the middle of Luang Prabang's city center on Sisavangvong Road, so there are dozens of restaurants and cafes just outside the door.
The staff are very friendly. They have wifi, but if it doesn't work (a common problem in Laos) there's an internet cafe right in the guesthouse lobby.
Overall if you're on a budget and location is your main concern, this should be a good option.More
- Free Wifi