3 Best Hotels in Oaxaca City, Oaxaca

Both this attractive B&B and its resident restaurant, La Olla, are run by chef-personality Pilar Cabrera. In Las Bugambilias, one of three houses that make up this B&B, every room is different, but they're all brightly painted and comfortably outfitted. Some rooms have little terraces or patios. All rooms are no-smoking. Guests get both free Wi-Fi and some international calls (including to the United States and Canada).

A fantasy villa buried in the wooded hills about 30 minutes north of the city center, Casa Raab is ideal for traveling groups. You can rent rooms in the main house or take over a casita that's perfect for a family of four. Hiking trails surround the house, which has breathtaking mountain views. You'll feel part of the family as you eat meals together in the dining room. Owner Tony Raab grows his own agave plants, produces his own artisanal mezcal, and helps to organize excursions. To really get around, though, you need to rent a car.

María Teresa Villarreal, the owner and operator of this pleasant little place, proudly shows off her restored colonial-style home, which is not fancy but has the lived-in feeling that many people are looking for in Oaxaca. You can mingle with other guests (some long-term) on the open patio gladdened with laurel and lemon trees. Those staying in standard rooms share a brightly colored outdoor kitchen, while those who have booked studios get kitchenettes with coffeemakers and other essentials.