This very comfortable hotel is just two blocks from the heart of town, but perched on a hill so the views are amazing. (Your thighs and calves will get a workout on the walk up to the hotel). I had one of their smaller rooms, but it was well appointed, big enough -- and that view! Town, mountains, sky. Wonderful sunrises. Not cheap, but good value for what you get.
I think the hotel has only 22 rooms, but it seems much bigger - so many places to sit, read, bask in the sun, have a drink. The breakfast buffet is very good, with a tremendous number of choices. The staff is friendly.
The same geography that gives Posada del Tepozteco the great views means that it does get some town noise - music from the plaza, the whistles of the traffic police and especially the church bells. Might depend on your room, and anyway it didn't bother me at all. it was comforting to fall asleep knowing there was such a lively town down below.
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