Hotel Casa Arnel

This family-run budget hotel is located in Jalatlaco, one of Oaxaca city's oldest neighborhoods. Just northeast of the city center, it's about a 15-minute walk to the Zocalo, but the leafy courtyard with birdcages feels like an oasis, and the rooftop terrace is a lovely place to spend an evening comparing notes with other travelers. Casa Arnel's rooms are small but comfortable and the hotel restaurant serves great breakfasts.