The Madrugada is is a nice little place - we liked it a lot. Its very simple - if you are looking for a full service US/European hotel you will be disappointed. But if you want an inexpensive, clean place with a little style you will be very happy.
Its probably in between a nice hostel and a low end hotel. All rooms have a couple pieces of furniture and ceiling fans. Shower are supposed to have hot water but we never saw it. But the place is clean and the location next to a stream is pretty and very relaxing. We spent a morning just reading in the hammocks located on the deck outside all the rooms and couldn't have been happier. The photo above is an accurate view of this area - its very nice.
The hotel is 2 blocks from the town square and a 5-10 minute walk from the entrance to the Copan Ruins. We found the Madrugada so relaxing we stayed an extra day in Copan.
One warning - the hotel looks empty from the street and is not well marked.
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