I just returned from a visit to Quito and we stayed at the Mercure Alameda. I found this hotel to be an excellent value. As others have observed, this is not a quaint, local property but part of on international chain that I was not familiar with. I would guess it is a step down from the Marriott or Hilton, but not by much. We heard about it from a travel agent because many tours book through this hotel. That tells you something. We found the property to be very well maintained, the lobby was stylishly appointed, the rooms and hallways nicely decorated, and the service attentive. The location is convenient--not in the heart of the restaurant and bar district but a short taxi drive away. I would recommend that you skip the breakfast if you have a choice (they offer two prices at the Mercure website, though I booked through the 800 number in the US and got an even cheaper rate.) They charge $11 per person which by Quito standards is very expensive though it is a nice spread of food. If you want a huge breakfast it might be worth it but if you want simpler food just order from the menu or try someplace within walking distance of the hotel.
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Address: Av. Roca 653 at Av. Amazonas, Quito, Ecuador