The Good - can't beat this location for proximity to shopping, restaurants and the municipal beach. You are in the middle of Centro.
The Bad - everything in the room is ancient. Bathrooms are badly in need of major renovation. AC is too noisy to sleep with it on but you'll be too hot with it off. Weekends the noise from the bars can carry on until 5am.
Posted rate is $1050 peso's but the "deluxe" rooms which have a slightly larger TV and a mini fridge can be had for $650.

We had been staying at Hotel Celeste for 2 nights at a time but moved because of noise till 5am on Fri/Sat nights. We went looking for an inexpensive hotel that had a/c and small fridge. There were hotels that were cheaper and nicer but did not offer what we were looking for. The hotel is much older. We found the staff very helpful and polite. The hotel does not have all the amenities that the new ones have. We wanted a Hotel in Centro before and after our stay at Pacifica. We love the sights and sounds of Centro and love being close to everything. We felt safe walking around at night and Sunday at the basketball court is an experience to enjoy.

We were not very impressed with this hotel. Our room was adequate, clean and comfortable. However, on the weekend it becomes very noisy, various live music venues at a very close proximity. One particularly irksome matter was that we were told our breakfast was included and then we were charged. There was nothing we could do because the member of staff who had told us this was not on shift, also the communication difficulties made it difficult to complain. The location was good and there is a really good internet cafe next door.

We booked this hotel thru "Discovery Mexico".The photos they had were 20 years old! We arrived @ the hotel in the early morning after a 14 hour bus ride, expecting the room that we saw in the photo, we got "CRAP" There was mold all around the bathroom, no hot water, very dirty overall, window screen was falling out, & it was not very secure! We had trouble also with getting some kind of reciept! They had our reservation but we still had to haul out our computer, go next door (it was closed) so we had to try to find another place that made copies( it was 7:30 in the morning) & return to the hotel with a copy of our reservation?!! It was all very unfriendly! Needless to say, we only stayed there for 4 HOURS!! Big hassle & they just didn't seem to care or want to care! Stay far away from Zihuatanejo Centro!! The pool was also very, very dirty & murky!!