Use the unaccent module that ships with PostgreSQL.
somedb=# CREATE EXTENSION unaccent;
CREATE EXTENSION
somedb=# SELECT unaccent('Hôtel');
unaccent
----------
Hotel
somedb=# SELECT * FROM table WHERE lower(unaccent(table.id)) = lower('Jose');
And speed things up a bit by generating an accentless, lower-cased index:
somedb=# CREATE INDEX CONCURRENTLY ON table (lower(unaccent(id)));