In July of 2005, I had the pleasure of discovering Posada Catarina--what a great bargain! The staff, especiallly Carlos and Cesar welcome you as if you were a member of their family and treat you royally. It is clean, quiet and located near three markets and a skip and a jump from the zocalo. You are allowed one hour of free internet every day and you have access to the rooftop terrace which is wonderful for entertaining your guests with a glass of wine. My room had a small television, but who wants to watch television while on vacation. The phone worked and messages were always delivered. There was always plenty of hot water. Carlos plays classical music in the lobby which always adds a nice touch. Last July the school teachers had taken over the zocalo, nevertheless the carnival atmosphere was charming.
Again, I spent three weeks there this last December of 2006 when the zocolo had been occupied by the federal police who had displaced the militant teachers. I even got a better bargain at Posada Catarina because not many tourists are visiting Oaxaca these days; however, I always felt safe and the weather was great. Again, Cesar and Carlos who staff the front desk were just delightful and go out of their way to help you. I am beginning to make Posada Catarina my home away from home and plan to return there again this coming July. I heartily ,and without reservation, recommend this friendly hotel. If you want a bargain hotel which is clean and safe with three charming courtyards, this is the place for you. I especially love to entertain my friends on the terrace from which you have a lovely view of Monte Alban. You can hardly believe that you are right downtown until you look down on the street.

If you are looking for somewhere clean, reasonably priced and well located, this is a terrfic deal.
Will discount if you pay cash in pesos. It was 400 pesos per night / approx USD 38
Close to the Zocolo and 3 markets - very nicely located and easy walking distance to all.
Has a nice terrace on roof. Our room was at the back, overlooking a courtyard garden. It was very quiet and no street noise.
Has all the basic creature comforts including unlimited drinking water.
You have to decide what you are looking for - luxury or basics. Most of the day you are seeing sights and only need a place to sleep.
If you are expecting a lavish ***** hotel this is not for you.
There are no phones or TV in the rooms. No a/c, which you don't need in this lovely mountain climate. A fan was provided and more than sufficient.
If you want a clean nice safe place to sleep, good value - this is an excellent place to stay.
We would definitely stay here again and throughly recommend it.

My wife and I have stayed at the Posada Catarina five times. It is comfortable and nicely decorated. There is a fan in the room and is very convenient. Be careful when leaving. The guys at the front desk are running a scam on us gringos saying the taxi to the airport is $1200 pesos. They are getting a kickback from the drivers. Other than that (which leaves a bad taste in your mouth when you leave) it is a nice place.

Posada Catarina is very welcoming. I've stayed there twice over the last 2 years, and both times was impressed. It is a quite oasis in the hustle and bustle of the market district. The location is great - five munute walk from the Zocalo. The rooms are very authentically decorated; to keep it quite, ask for one on the second floor, toward the back. Three patios in the hotel are all charming. There is a decent restaurant where you can have breakfast. Free parking is also a great plus. Most of the staff does not speak English, but will do their best to try to understand you.

The only drawback I found was the shower - the water wasn't too hot, and the water pressure was pitiful. There were also minor problems with the toilet. For the price, however, I can't complain.