I haven't stayed at all the hotels in Oaxaca city, but I'm pretty sure it'll be near to impossible to find a better option. Their customer service is second to none. Exquisite food. Lovely place. Quiet and cozy rooms. Very well located. Did I mention how excellent their customer service is? I was there with my wife and her mother for 3 nights and we spent a great time here. Like a second home. Ana, Erick, Esmeralda, Florencio... all of them treated us really nice, they helped us with some reservations, helped us to provide a very tasty "caldo de pollo" for my wife's mom since she felt sick one night, they even helped us to find a hairbrush.
I'm very pleased we decide to stay here. One of the best hotels I've ever stayed at. Based only on customer service and food quality, the value/price relationship is great. 100% recommended. I'll come back without hesitation.