Easily one of Banyuwangi's best budget choices is this relaxed, lime-green guesthouse, tucked down a residential street in town. Rooms are both spotless and comfortable. It's run by Johan, who's very helpful and is clued up with all the local tourist info. It's also the place to arrange good-value Ijen volcano tours (per person 200,000Rp, excluding entrance ticket) to see the 'blue flame'.
If you book a tour to Ijen, there's free pickup from the harbour, train station or bus terminal. Snorkelling tours are also popular here.