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Budget accommodations in Papeete are almost impossible to find.  We were lucky enough to reserve 3 nights at a pension which was highly recommended in the new Lonely Planet.  We paid $60 US per night – a steal in Papeete.  The room was good – a little small, but very clean.  The shower was shared (although he does offer private bathroom at a higher price).  The German owner is a bit of a funny guy, but he was always prompt, picking us up at the airport always on time (transfer costs only $15 for a 10 minute drive, but this is a steal for Tahiti).  As Papeete was our main transit point, we were often connecting at odd times of the night – and he was always there, even at 1am, to pick us up.

The hotel is about a 20 minute walk from the water, and about 40 miuntes from "Les Roulottes".