There aren't any 5* hotels in Oaxaca, but this is as close as you can get for a small boutique hotel.
The good: rooms are spacious and clean with nice amenities. There was a small water fountain just outside our room that made a relaxing sound to sleep with.
Service was excellent and personal.
Breakfast is served until 12pm, so you don't have to wake up at the crack of dawn.
The bad: Mosquitoes. When we arrived in our room, we killed 7 mosquitos. It was as if the room hadn't been used in awhile and the flies made their home, or housekeeping left the door open for extended periods of time while cleaning. I was bitten 4 times and my girlfriend 3 times during our stay of 2 days.
The rooms also lack daylight. There was a small window opening up to a 3x3 foot space with a water fountain, but no daylight. Very dark.