We stayed at Posada Toledo for one night during our trip. While it is definitely a hotel with a lot of charm, and is a very good value, we found the accomodations to be only average. We did not take advantage of the breakfast, which we hear is excellent. Not seeing what else was available in the price range, it is hard to compare with others, but some details about this one:

LOUD air conditioner, that seemed to have only off/on
TV available
an attempt at artwork was made
charming courtyard
private, secure parking
less-than-comfortable bed

the girl on the information point told us about the hotel.
iit's a very nice place with patio, with colonial furnitures, charming and with a great service, but with a very reasonable price.
it's a good choice if you travel to merida

This is a lovely hotel in the centre of Merida. I unfortunately took the advice of Tourist Information when I first arrived in Merida and went to The Pink Flamigo hotel (the name should have put me off) just a few metres away from Posada Toledo. It wasn't very nice, so moved to the Toledo the next day. Although a few dollars more expensive, it was infinitely better. The staff at the Toledo are friendly, the rooms are beautiful, very clean and the whole hotel is like a woking antique museum. This was the nicest hotel I stayed at in 5 weeks in Mexico.

My mother, me and 2 friends had our vacation at Playa Del Carmen November 2005 and as we wanted to look around at Youcatan we hired a card and went to Merida to stay at the Hotel Posada Toledo for one night. We went right to the hotel as we came to Merida and got 3 nice big rooms right away at third floor and the car we got into a parkinglot right over the street from the hotel. The view was very lovely and the staff very friendly. We also were able to look into the beautiful French Suite as well.