I recommend the Gran Hotel Don Pelayo in Covadonga, right next to the magnificent Basilica of Covadonga. A 4-star hotel, very comfortable and spacious. In midsummer the temperature is 20º. The food is very good and the views are unparalleled. Approx. € 110 per night.
Finding where to stay in Covadonga is not as easy as it might seem. In this city the main monument is the sanctuary, which receives many visitors every year, but it's in a small town in the council of Cangas de Onis where only around 60 people live. The fact that it's such a small place makes finding lodging in Covadonga more difficult because there are few Covadonga accommodations. There are some hotels in Covadonga, specifically three. So if you want to stay in one of the three Covadonga hotels you must reserve well in advance. But if you find want to find cheaper places to stay in Covadonga, you can also look in nearby Cangas de Onis and the surrounding villages. On "Picos de Europa Holiday Villas" you'll find Covadonga hotel deals. You can take advantage and see the city in a day and then continue on your way to another city. Cangas de Onis is home to the tourist center of the whole area of Asturias and the Picos de Europa, as well as the nearest point for those who can't find Covadonga lodging. Cangas de Onis is just 10 km away and on the road, you'll find more hotels and cottages. Soto de Cangas is 6 km away and is also a good choice for those looking to sleep in, or near, Covadonga.