Be advised that the hotel has recently changed it name to Casa de Los Dulces Suenos
Stayed here 4 nights late November. Good location near Plaza San Francisco and craft shops, one block away from main boulevard, equal walking distance to cathedral in one direction and aqueduct in the other. Rooms are arranged around the central courtyard where breakfast is served. Our room was a decent size, beds reasonably comfortable, bathroom small but adequate. Only problem was that the main doors by which the tiny reception desk is located are open directly onto the street from early morning until late at night. Any noise from the street—cars, conversations, whatever—echo into the courtyard so that they seem to be directly in your room. Even after the doors are closed, the water pump that gets water up to the roof kicks in, so getting a night’s sleep was a challenge.
As others have remarked, the young staff are pleasant but not particularly knowledgeable. One morning we asked what kind of celebration was being prepared in town since the streets were closed to traffic. The young man at the desk had no idea. (It turned out to be Revolution Day, and luckily we got ourselves to a good spot to watch a terrific parade.)
Overall we thought this place offered good value for money, but it makes us for the first time consider bringing earplugs when we travel.

First off the location is great and the interior courtyards are charming, but be warned of at least one very bad room.
We stayed (3) nights in probably the most awkward and smallest hotel room I have been in. The room consisted of a small entry area, where the bathroom was located, and then what was more of a ladder than a stair to a loft that was just big enough for a bed. I have stayed in small rooms before, which is OK, but there were no windows except for a small transom above the door which did not open. Luckily the nights were cool during our stay and hesitantly ended up leaving the door open in the evenings to get some air. During the day the room became unbearable stuffy and warm. I can not imagine staying here during the summer months.
Another room flaw was that the lack of privacy in the bathroom, which was open to the entry area and loft. Not good when you have a case of M. Revenge. We peeked into other rooms off the front courtyard and they seemed much nicer.
The staff was friendly, but came off as a bit inexperienced. For the three days of our stay we never once saw any type of manager or owner. It seemed to be run by a few college students.
I would recommend this hotel and might stay here again in the future, but would want to make certain of which room I would be getting.

(NOTE: This hotel has changed it's name to Hotel Casa de los Dulces Sueños so don't be surprised when you see that name at the address of Mansion San Francisco!).

The positives - the price, the location, valet parking.

We had a car full of stuff from shopping, so we appreciated the secure parking. The valet was always available.

The location was also wonderful. Far enough away from the really busy streets, but close enough to walk everywhere.

The negatives - inexperienced staff, room issues.

Granted, I believe we must have gotten the smallest room at the place (#7 - avoid it). We looked at other rooms which were much nicer. We did get a very low rate for our really small room. The room was clean, I'll give it that. It would have been nice to have a fan ... the room was stuffy.

Our window opened up to the back courtyard (covered ... by plexiglass). They had a cute little bird in a cage back there that sang sweetly...but could have been annoying to anyone who doesn't like that. We had a bit of a fun time one night when it rained so hard, water started pouring down from the covered courtyard. We thought for sure our room would get flooded because the entry was lower than the floor... but alas, no. Whew. I would stick to the rooms in the front courtyard.

Regarding the staff, I guess I was just disappointed. They were nice. It's just that when I asked questions about the area (like where a good restaurant was in a few blocks of the hotel), they didn't know. I also asked for an iron and ironing board. I got the iron but the staff member explained that the ironing board was locked in the cleaner's room. He recommended I try ironing on something else. The wireless also was not working at the time and the staff member I talked to about this gave me a long story on what it would take to get it working again. And it couldn't happen until so and so came back, etc.

They were very young to me and still learning about working in a B&B! So it goes!

All in all, I would say that the location and price was worth the staff inexperience.

First time in Morelia, and we couldn't have picked a nicer small hotel. We had the Girasol room-an inside room, comfy bed, spotless, absolutely quiet, a nice sitting area, plus natural lighting from 2 skylights. That's just the room. The courtyard was quite pleasant with free internet access. Good breakfast, too. Short walking area to either the zocalo or aqueduct area. If you're a coffee addict, there's 4, (yes, 4) great coffee shops just outside your door. Don't speak Spanish? That's OK, Juan and Brenda speak English. One downside, but it's minimal: the bathrooms are smallish, but adequate. Doesn't have the grandeur of the Hotel Virrey, but in all, one of the nicest small hotels we've stayed in in Mexico.