The Watermark Beach Resort is my top pick for where to stay in Osoyoos, BC. Located right beside the lake, the hotel is also only 5 minutes walk from a choice of restaurants and shops. Osoyoos' craft brewery is in the same building.
Choose between swimming in the lake or in the on-site pool. All suites have a full kitchen as well as separate dining and living rooms. If budget isn't an issue, consider booking one of the fabulous beachfront townhomes.