Fodor's Expert Review Hostal de Su Merced

When you notice the colorful wood ceiling in the reception room—a reproduction of the original painted by a Jesuit priest—you know instantly that this family-owned hotel is a gem. Built as a private home in the late 17th century, the gleaming white colonial structure with a handsome rooftop terrace has large, airy rooms with sunlight streaming in through tall windows. The top-floor rooms are the best, and are worth the extra cost. All the outdoor spaces are inviting, particularly the upper terraces and the sundeck that offers excellent views of the entire city.