We stayed just one night in Morelia, but the hotel El Carmen was a great place to stay. The hotel is facing pretty Plaza del Carmen, and is only a couple of minutes walk away from the cathedral. The rooms are quite small, but ours was very clean and tidy. We were lucky enough to get one facing the plaza outside, and although it was a saturday night we didn't get bothered with noise at all. (bit of luck maybe!) The room was very reasonably priced at 450 pesos, so all in all I would say that the hotel El Carmen is a very good bugdet option.
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