There are some dives... But you probably want to be at the north end of town.... So, the hotels on Skaha Lake Road are at the wrong end. But here are a couple. Penticton Slumber Lodge. (It's right on Okanagan Lake) Ramada Inn, it's right near the convention center. Sandman, it's also very close to the convention Center. Travel lodge which is across the street from the Sandman. But actually Tiki Shores, is right on the lake and was just renovated and looks great. Pink I believe, but I believe they have kitchenettes. But there you go. Give them a try.