Being from Guatemala I have been to Antigua countless times - and have stayed at several of the hotels. In my opinion, nothing compares to Casa Encantada and I honestly don't understand why it currently sits at #26 on this list.
It's a hotel-de-charme where every little detail has been thought of. There are only a handful of rooms, which are on the smaller side (as are almost all hotel rooms in Antigua) but the decor is very charming and the beds are very, very comfortable. The rooftop terrace serves breakfast (included) which is tasty and you can also sit there and enjoy cocktails or just read a book.
The hotel is located a few blocks off the central park which in my opinion is a good thing - virtually no traffic makes this a quiet corner in Antigua. The park, shops and restaurants are a short walk away.
The staff is very welcoming and when I've called in advance, I've been able to get a small break on the rates. It's not much, but it's an example of their guests-first attitude. On occasion I have come in very late at night (after enjoying Antigua's nightlife or an event) and they are happy to come out to the street and meet you even if it's 5 a.m.
You can find cheaper rooms in Antigua but for the $100 to $150 range, nothing beats Casa Encantada. If you're unable to get a reservation here, try the Lion's Inn (even more beautiful although poorly located and very pricey) or Cissus Boutique Hotel (pricier also). For restaurants, Nicolas is in my opinion, one of the top restaurants in all of Central America, and could stand up to any restaurant in New York or Paris. Other classics are Meson Panza Verde (the hotel is also gorgeous) and Caffe Opera for something more informal yet very sophisticated fare.
The best endorsement I can give Casa Encantada is that after staying at a dozen or so other hotels in Antigua, ever since I found Casa Encantada it's the only one I stay at - and it's been about six times already!
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