There were several reasonable, well reviewed hotels located along the south side of Zihuatanejo's bay, but they didn't seem to take internet reservations. Instead, I chose a hotel downtown which billed itself as a 4 star hotel, but which is at most a 3 star hotel (I don't believe that there is a restaurant on site). The main harbor is four blocks away, though within two blocks you are into a very touristy, well lit shopping / restaurant district. Three blocks from the hotel towards the bus station takes you to the main street which, if anything, is even more brightly lit, more heavily trafficked and not populated with nearly as many tourists. There is a convenience store right across the street from the hotel. There was a bit of rhythmic bass from some nearby bar but it quieted down and eventually disappeared near midnight. Drinking water was supplied in the form of a two small sized individually sealed bottles. I had a view towards the harbor, but from three floors up, there really wasn't much to see. The room had air conditioning and it was appreciated particularly during the day. The fan seemed to direct the air flow directly over one bed so one side of the room felt ice cold. Strangely, the hallway lights on first and second floors were not all lit as if the hotel was partially shut down.
The best price I found for February 2008 was on Hotel-Rates at US$85. This was a reservation only and not prepaid. When I checked-in, the desk clerk wrote down the room rate based on the price I had printed on my copy of reservation. He actually converted the amount to 850 pesos, which gave me a bit of a break on the rate. And that was the rate I paid without any additional taxes. He asked me if I wanted to pay for the room at check-in or check-out and I chose check-out which turned out to be a bit of a mistake. In the morning, the night clerk didn't know how to use the credit card machine so I could either pay cash or we could wait for the morning clerk to arrive. I opted to wait and the night clerk was kind enough to drive me to the bus station in compensation for making me wait. I gave him 20 pesos for his trouble, which is what the taxi cost to go from the bus station to the hotel in the first place.
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