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La Polar comes highly recommended, and it should be, because I loved it. It's right next to Poniente Beach and the Yacht Club, specifically on Avenida Juan Carlos, and best of all, it's practically brand new. It's very modern and it opened in August 2003. The hotel is tiny, with just 25 rooms, all with private terraces, satellite TV, and complete bathroom facilities. The highlight is the cafe, known as Cafe La Polar. I liked it a lot, even though it's only rated 2 stars. I think it's much better than many 3 and 4 star hotels I know. I'm going to recommend it to everyone, and I almost forgot, the facade of the building was built by the famous Basque architect, based in Asturias, Ernesto Knorr.
It's not easy to find a hotel that meets your basic needs for less than 30 euros a night. Nothing fancy, this is a one-star hotel but with everything you need. Very close to the train station, and with free wifi throughout.
Hostal Plaza is located in the center of Gijon, less than 200 meters from the train and bus station. The Cimadevilla neighborhood and the beach are less than 10 minutes' walk away, so the location is great. As for the rooms, they're a good size, but simply furnished and somewhat sparse. The bed was a bit soft for my taste, but bearable for one night. The bathroom is newly renovated, and the room price was about 35 € / night, on the cheap side for Gijon. There is parking on the street nearby, and the staff were friendly and attentive at all times. A good choice to sleep on the cheap.