Text by Christopher Baker

This charming and budget-priced little hotel on the main street, just steps from the main plaza, is housed in a recently restored colonial-era building dating from 1867. For better or worse, the original colonial tile-work has been replaced with rather soulless contemporary ceramics, but beautiful hardwood doors are a lovely touch. The location is a major plus for sightseeing, but it comes at a price: At night noise from the partying in the square and the nearby rooftop La Terraza cabaret can wake the dead.

Lofty ceilings assist air-conditioning in keeping things cool in the 10 bedrooms that surround an atrium courtyard, and four upstairs rooms open onto narrow balconies. Modest yet tasteful tropical-themed rattan furnishings and lively autumnal color schemes in the bedrooms contrast with simple colonial-style decor and clinical whites in public areas. All rooms have lofty ceilings, plus two twin beds—so honeymooners should plan accordingly. Four rooms share a balcony over the plaza. Satellite TVs offer four international channels, and modern bathrooms sparkle.

The atmosphere is agreeable and the hotel offers Internet service and has a small bar and restaurant, plus pharmacy. Islazul does a good job of running its hotels and this place is no exception, offering good value for budget travelers.