There are many islands you can visit in the Galapagos but unfortunately non have hotels where you can use your points. The area I visited was Port Ayora on Santa Cruz island where there are plenty of options for places to stay. You can stay at a hostel type place for $30 or at a more upscale hotel and pay as much as $300, it just depends on your travel style.
Some websites where you can book your accommodations are:
Airbnb. com – For new customers, use this link to get $25 off your first booking
When you are booking your hotel, just be aware of what island you are booking on. Also some hotels post on more than one site and the prices can vary from one to another so its good to check all three just in case.
Personally, I stayed at Hotel Castro right along the port. What mainly attracted me to this place was the location and the good price. On HostelWorld.com I booked a one bedroom with private bath for $40+ 22% tax which is close to $50 a night. When booking, I just had to pay a deposit and the rest I could pay at the hotel. You can pay with cash or you can pay with PayPal with a 10% fee when checking out. The hotel has an small AC fan that you can control, slow but funtional Wi-Fi, and it also includes a simple breakfast. They also have a water station in the lobby area where you can fill up your water bottles. Here are some pics of the hotel:
Things to note about the hotel are that it is near a church so bells go off in the evenings and on Sunday mornings for service. Also if it rains hard, which is rains pretty frequently, I noticed some leaks in the room. Also the water pressure for the showers are low but it does the job. This hotel would be for people who like to travel on a budget and aren’t too picky about the amenities. If you are a low maintenance traveler than his would be for you.
To find out how to book flights to the Galapagos with miles and the process of getting to the island, check out this post.