Hostal Posada - slap bang next to the Plaza, superb location, very quiet and the rooms are lovely, colonial, wooden beams, clean and spacious. Some of the rooms are bigger than others... I kept swapping rooms.
The breakfast was ok, I got bored after one week, no variety.
The restaurant though has fantastic daily menus for all of 55 Bol.. so £5... you can seriously eat so well, clean, fresh and healthy.
The beds are good and not too hard. The staff speak little english so you may be stuffed there. The staff are all pleasant.
Good value for money. Although after Sud Merced, I'd stay there any day of the week.
Hostal du Sud Merced http://www.desumerced.com/ingles/ingles.php
I highly recommend this fabulous hotel, it is excellent value for money. Rooms 18, 20 and 21 are the best at the top with panaromic views of the city. Room 16 is also lovely. I stayed in 16 and could hear birds tweeting every morning and woke up to a roof terrace covered in gorgeous flowers/plants.. wonderful start to each day.
The breakfast is brilliant - so many cakes, fresh juices.. eggs, pancakes..lemon meringue.. you name it, they have it.
The staff are excellent, speak english and the same staff have been here for over ten years so this speaks volumes for the hotel. They treat their staff and clients well. They can not do enough for you and if you are travelling on somewhere will do their upmost to ensure you are safe etc.
Stay here and you will feel this is your home from home.
Oh and the roof terraces - there are two levels... beautiful.. the flowers... heavenly.
Warning - don't book rooms on the street, they may be big, you will be up all night with the noise.