We could find only two well known hotel booking web sites, Superbreak in the UK & Hotwire.com that allow customers to book hotels using PayPal. Superbreak is a UK based holiday company that specialises in UK hotel short breaks. But they also offer a good range of hotel offers throughout the world. Hotwire is part of the international travel company Expedia.
Prices seem quite competitive andl accept PayPal for hotel reservations online. Superbreak range of hotels and short breaks.
If you wish to pay using your PayPal account, simply select the PayPal option during the booking process.
Hotwire launched in the year 2000 and offers discounted airline seats, hotel rooms and rental cars. Hotwire is an operating company of Expedia and currently allows customers to book hotels using Paypal as a payment option. Hotwire allows you to select Paypal as a payment option during the booking process.
In general, all other major hotel booking sites require that you use a credit card to make a hotel reservation. Many do not charge your card until you have completed your stay. But depending on the cancellation policies, hotels will apply a no-show charge to your credit card if you fail to turn up at the hotel.
If you do not wish to use a credit card or PayPal account for hotel bookings, then your only other option may be to contact the hotel directly. You may be able to work out some other arrangement that will satisfy the hotel's requirements.