We stayed at Hostal Begona in Bilao two weeks ago. We stayed there before going to Pamplona and liked it so much that we stayed there again on our way back to Madrid. The people there are very friendly. The lobby and rooms look recently redone. Very clean and nicely decorated in bright colors. It was also one of the only hostals that had internet connection there in the lobby. Your room also has a small mini bar with water, soda, beer, juice. It is also very well located only blocks from the train station and a 5 minute metro ride from the bus station. I highly recommend staying there.

We also took a bus from Bilboa to San Sabatian. We stayed at the Hotel Niza . It was kind of last minute and it was all we could find with a vacancy so we payed a little more than we had wanted to but it was worth it. You walk out of the back of the hotel to a beautiful beach. Breakfast with a roll, a crossant, coffee and orange juice is included in the price. They have a wonderful spanish/italian restaurant below with great prices and the hotel is beautiful.