Finding the right place to stay can transform your Oaxaca experience from good to absolutely magical in this vibrant Mexican city known for its incredible food, art, and culture. Whether you’re looking for a budget-friendly hostel filled with fellow travelers or a luxurious colonial-style hotel with a rooftop view of the mountains, this guide reveals the perfect Oaxacan accommodations that match both your style and your wallet.

Oaxaca is home to magnificent natural landscapes, fascinating historical ruins, delicious Mexican food, and a unique kind of Mexican charm.
Located in the southern part of the country, the city is nothing short of a cultural melting pot, and it’s an incredible place to visit when travelling through Mexico.
Whether you’re looking to discover Oaxaca’s ancient cultures or to explore incredible sights, there’s no doubt this colourful city is an excellent choice of destination. It truly has something for everybody, regardless of your budget and preferences. And that obviously goes for accommodation too!

If you’re feeling a comfortable holiday with all the bells and whistles, there are plenty of luxury accommodation options available.
But if five stars isn’t quite your style and you’d rather save your money to explore Oaxaca with local tours, there are also lots of excellent mid-range and budget options on offer.
So, if where to stay in Oaxaca has been the question on your mind, wonder no more! Here are some of the accommodation options in Oaxaca, Mexico, ranging from luxury to mid-range and budget.
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Luxury – Where to Stay in Oaxaca
Indulge in the ultimate Oaxacan experience by choosing one of the city’s luxurious accommodations.
From boutique hotels nestled in historical neighbourhoods to lavish resorts with breathtaking views, prepare to be pampered amidst the beauty of Oaxaca’s character and landscapes.
Palacio Borghese Hotel Boutique
Less than two blocks away from Santo Domingo de Guzman Church, Palacio Borghese Hotel Boutique is situated in the centre of the city.

Local attractions such as the Jardín Etnobotánico (Botanical Gardens) and the Museo de las Culturas (Museum of Cultures) are just a ten-minute walk away, making it a central and convenient place to stay.
The hotel is based in an old colonial building, but guests have the luxury of modern furnishings and technology throughout, including high-speed Wi-Fi and a valet service.
The Palacio Borghese features an elegant interior, with sophisticated furniture and beautiful fabrics. All the rooms have satellite televisions, luxurious feather pillows, and hydromassage bathtubs for the ultimate relaxation.

Guests can enjoy a delicious breakfast in the mornings, and there’s also a restaurant on site – but if you don’t feel like going anywhere, you can have your meals delivered to your door via room service.
It’s also an adults only hotel, so it’s the perfect choice if you’re looking for a quiet place to stay that will cater to your every need.
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Flavia Hotel
At Flavia Hotel in Oaxaca City, you can expect only the best in service and facilities. This five-star hotel boasts absolutely incredible interiors, seamlessly blending sophistication, modernity, and Mexican style into one.

Located on the top of a mountain with plenty of gorgeous scenery around, this is the ideal place to stay if you want to get away from the hustle and bustle of city life and indulge in a luxury vacation.
The rooms are spacious and luxuriously designed, equipped with a television, a coffee machine, a safety deposit box, and a desk. Some rooms also have a private terrace, while others treat guests to delightful views of the city in the distance.

Although Flavia Hotel isn’t in the middle of the city per se, it’s still reasonably close to popular sites and attractions.
It’s less than 10 miles from Monte Alban and from the airport, and a short drive away from Oaxaca city centre. So, you can easily spend your days exploring all that the city and its surrounding areas have to offer before retreating to your own little piece of heaven in the evenings.
On-site, guests have access to the hotel bar, restaurant, fitness center, swimming pool, spa and wellness center, room service, and parking.
Compare prices for Flavia Hotel
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Hotel Casa Santo Origen
Enjoy the luxury of space and privacy when you stay at Hotel Casa Santo Origen, situated in the center of Oaxaca City.

This five-star accommodation encapsulates what it means to be in southern Mexico, with a gorgeous outside area ideal for lounging in the sun, eating meals, or simply reading a book.
The hotel pool is lit up at night, making for incredible evening dips on balmy summer evenings. Treat yourself to a delicious meal at the hotel restaurant if you’re not in the mood for venturing out, or order a drink at the bar if a nightcap is what you’re after.
Hotel Casa Santo Origen offers excellent customer service, ranging from their 24-hour reception to room service and bicycle rentals.

The rooms are wonderfully spacious, offering an additional seating area too for when you’d like to relax during the daytime. You’ll be treated to air conditioning – an absolute essential during the summertime – as well as a flatscreen television, a safety deposit box, and views of the pool.
The bathrooms are luxurious and spacious, equipped with complimentary toiletries and a hairdryer – the perfect refuge after a long day of exploring the city.
Compare prices for Hotel Casa Santo Origen
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Mid-Range – Where to Stay in Oaxaca
If you’re after a comfortable and charming stay without splurging on luxury, Oaxaca offers an array of delightful mid-range accommodation choices. Embrace the city’s authentic vibe while enjoying modern conveniences and warm hospitality.
Boulenc Bed and Bread
Located in the heart of the city near Santa Domingo Church, Boulenc Bed and Bread is an ideal mid-range accommodation option that’s very close to many of the city’s major attractions.

As the name suggests, Boulenc Bed and Bread has its own bakery (one of the best in the city) and restaurant attached. There’s also a shared kitchen available for guests to use, which can be really useful if you want to cook yourself a meal or throw together a quick snack.
But if you don’t feel like doing anything, you can also order room service straight to your door!
All the rooms have desks and there’s strong Wi-Fi throughout the building, making it ideal if you need to do a bit of work.

Some of the rooms boast a beautiful view of the city, and guests are treated to a delicious continental breakfast in the mornings, with a vegetarian option available too.
509 Accommodation
Stay in the heart of Oaxaca’s old historic center when you choose 509 Accommodation. This modern, recently renovated homestay offers a variety of different sized rooms, ranging from small, double rooms to large, family rooms.

The rooms are all air-conditioned, and each unit has a private coffee machine and spacious bathroom. Some rooms have an additional wardrobe and a fully-equipped kitchenette.
The accommodation is within walking distance from the city center, making it a great base from which to explore all that Oaxaca City has to offer. If you’d like to rent a car for further excursions, you can do so directly from the accommodation by arrangement with the hosts.

On the property, guests also have access to a sun terrace and a beautiful garden, ideal for relaxing afternoons after long days of sightseeing and exploring.
Best of all, 509 Accommodation offers rooms at an incredibly reasonable rate, meaning that you can enjoy all the creature comforts during your holiday without breaking the bank!
Utopia Casas Boutique
Offering you everything you need and more, Utopia Casas Boutique is the ideal mid-range accommodation option in Oaxaca City.

The villas are absolutely gorgeous, equipped with a private kitchen, terrace, en-suite bathroom, and coffee machine. They’re beautiful, spacious, and boast awesome views of both the garden and the city.
The design of the interior is modern and chic, with more than enough space to feel comfortable and at home.

Guests have access to the hotel’s Jacuzzi, swimming pool, and free parking facilities, and if you need a shuttle to or from the airport, all you have to do is enquire at the reception.
High-speed Wi-Fi is available throughout the property, and there are barbecue facilities too if you’d like to cook up a storm and enjoy an evening under the stars!
Budget – Where to Stay in Oaxaca
For travellers seeking an affordable yet enriching stay in Oaxaca, there’s a plethora of affordable options. For this one, I’ve reached out for advice from renowned budget travel expert, Will Hatton, also known as The Broke Backpacker.
Azul Cielo Hostel
Even if you’re a fan of the art of budget travelling, you can still find a great place to stay, and Azul Cielo Hostel is a testament to that.

Located in the central part of Oaxaca City, this hostel is the perfect place to stay if you want to be central, enjoy a social atmosphere, and have a comfortable place to sleep.
Azul Cielo Hostel has a variety of different types of rooms on offer, depending on whether you’re traveling alone and want to save extra money by opting for a dormitory, or perhaps you’d prefer a private room.
Whatever your preference, Azul Cielo has it all, ranging from multiple-bed dormitories to king suites with private balconies.
The hostel provides guests with breakfast every morning, so you can make sure you’re fuelled and ready for the day before you venture out to explore!

There’s also Wi-Fi available throughout the building – in common areas and the bedrooms – and you can enjoy a drink in the hostel bar in the evenings if you want to relax and meet some fellow travellers.
One of the best parts of Azul Cielo Hostel is that its location is incredibly central within the city, only a 10 minute walk from the historic center – here, you’ll be able to wander around and find a variety of different restaurants, bars, markets, and it’s ideal for sightseeing during the day.
So, if you’re wondering where to stay in Oaxaca on a budget, Azul Cielo Hostel ought to be at the top of your list – it is often regarded as one of the best places to stay in Mexico.
Compare prices for Azul Cielo Hostel
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Yabanhi Hostel
Located at the foot of Fortín Hill, just outside the historic center, Yabanhi Hostel is conveniently located for the main attractions in Oaxaca.

It’s very close to several popular attractions and points of interest, including Oaxaca Cathedral, Santo Domingo Temple, and the ADO Bus Station; and Oaxaca International Airport is no more than seven kilometers away, making it the ideal place to stay when you arrive in the city.
The hostel offers dormitory-style rooms with bunk beds as well as private bedrooms of different sizes, depending on whether you want to save as much money as possible or budget a little but still have some privacy.

Either way, both options are super affordable. The rooms have private showers and bathrooms, and some of them even have little kitchenettes (including a fridge).
Yabanhi Hostel is also a great place to meet fellow travelers, with a shared kitchen and lounge area, as well as a terrace for socializing or relaxing. If you need a lift to or from the airport, the hostel offers a paid shuttle service, and free Wi-Fi is available throughout the property.
Casa Maye
Enjoy privacy and space when you stay at Casa Maye, offering delightful one-bedroom apartments in the center of Oaxaca City, available at budget prices.

The apartments all have private entrances, along with a shared courtyard and terrace. You’ll be able to enjoy scenic mountain views from your apartment, and the accommodation offers a paid airport shuttle service should you need to get to or from the airport.
Casa Maye is centrally located near several important points of interest, including Oaxaca Cathedral, Santo Domingo Temple, and the colorful neighborhood of Jalatlaco.

So, not only is the accommodation not going to cost you an arm and a leg, but you will also be saving on transportation around the city.
The units all have a seating area, a television, a kitchen, a dining area, and a private bathroom. Some of them even have private balconies!
If you’re wondering where to stay in Oaxaca that’ll be kind to your wallet but still offer you an excellent experience, Casa Maye is the place for you.
Do you have any questions about where to stay in Oaxaca?
Let me know in the comments!
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