My boyfriend and me spent our first days in Thailand at Parami Guesthouse and it gave us a warm welcome, very helpful staff, Roger, the owner, has always time for a chat, gives you good advices. Thanx to him we went into areas almost where we were the only tourists, only locals there (and soooo friendly, nice...), thanx to him we had a great 3-day-trekking-tour... the room was very clean, although a bit dark but actually that was good - the sun didn't burn to much then. Ok, bed was a bit hard, but after all the impressions you get during walking through the city you'll definately fall asleep quickly :-) Oh, and there's a very good restaurant just across the street, very thai, very delicious! But don't miss the food you'll get at Warorot market, the one you'll reach just walking a bit and then crossing the little pedistrian bridge...just great! For breakfast you can stay at Parami, the have very good muesli serve outside in the little garden if you want :-) and you pay not soo much for it. A big plus for parami was for us its location - if you like staying in a thai neighbourhood, not in a touristy one (which is in the older part of chiang mai, 20min walk), it will also be perfect for you :-)
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