I like this place. Los Arcos occupies a converted 1620 monastery and retains the charm. It has a nice shaded courtyard and the view from the terrace is fantastic. The carved wooden funiture in the room and the iron bars in the window create a unique feel to the place. The rooms are basic but very clean and hot water is plentiful. Single rooms start at $30 so this place is great for the price.
Directions: To find the hotel from the Plaza Borda, follow the hill down (with Hotel Agua Escondida on your left) and make an immediate right at the Plazuela Bernal; the hotel is a block down on the left, opposite the Hotel Posada.
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Address: Madero No. 7, Catemaco, Taxco, Central Mexico and Gulf Coast, 40200, Mexico