jbars,
I made this same recommendation to someone else interested in staying in Jarabacoa. Here it is.
I've stayed twice at the Brisas del Yaque hotel in Jarabacoa. Very nice and exceptionally clean, with hot showers, TV, mini fridge, and super friendly and helpful staff. Can't recall prices, but remember it being very reasonable. It's located just a block from central park and is within walking distance to everything you need. Of course, you can walk to just about anything there, it's so small. If you've never been to Jarabacoa, I highly recommend it. The mountains are beautiful, just look to the south from the hotel. There is a nice road you can take up through the mountains. It ends in a small village. I stopped there and attended the Sunday cock fights. Also, the hotel has an open air restaurant just outside that was very good. If you want to get away from the crowded city for awhile this is a good choice. The people I met there were great. Have fun!!!!