We are here again, our fourth year, and it's better than ever. The wonderful charm of Mexico is still at the Hotel Colonial: the architecture, the traditional decorations and most importantly, the friendly, helpful Yucatecan staff . . . and you are still in the middle of everything, the resturants, the entertainment, the shops, only two blocks from the Grand Plaza (Zocolo) - all that is special about Merida! But the hotel has gotten even better. No more window units covering part of the window. The rooms now have modern, quiet air conditioners located on the wall. The old square TVs have been replaced with nice, large flat screens with HD cable. There is a combination safe in the room. AND there is now free wireless in the room. The Colonial has always been a great value, clean and neat, but it's an even a better value now!
PS If you are going to stay more awhile, talk to the manager (Jorge) about a special rate.

Stayed here for three nights at the end of a small group tour of Mexico. The hotel is located at the junction of two busy streets and within a couple of blocks of the Zocalo and lots of reasonably priced restaurants - including one literally across the road from the main entrance. Several local bars have a 5-7 happy hour. There is a small supermarket at the next junction.
At first, we were a bit disappointed in our room, because the only window opened on to a corridor. However, that was a blessing in disguise, because, unlike most of the rest of our group, we didn't suffer any street noise. The room was on the third floor, so likewise we didn't hear the noises from reception that other reviewers mentioned. The room was basic but clean and adequate and after all we only slept and showered there!.
The reception staff were friendly and helpful and there is free in-room wi-fi. The hotel's restaurant was excellent for breakfast - 74 pesos for a buffet with a good variety of hot and cold foods As mentioned by others, the pool was small, but there's a very pleasant roof terrace and we'd grab a beer from the supermarket and sit up there to watch the sun set before getting ready to go out for a meal.
We left Merida by coach and the coach station is a 10 minute taxi ride (40 pesos) away.

The hotel was an excellent budget choice. Great location, quiet, clean rooms. Nothing plush about it but nor is the price. The only thing i would say is that the photos make it look "shinier" and newer than it is. The photos are all genuine but just not as "shiney" as advertised.

The pool is there but is tiny and there is a lovely roof garden where a group of us had dinner one night...

This hotel was a major disappointment. The only reason it doesn't get a one star is because the facilities are decent. Our room reeked of mustiness, another friend's room stank of cigarette smoke. We needed to keep the air conditioner on all night so the smell didn't overpower us! You cannot sleep as both staff and guests are yelling, whistling and banging items. Twice we had our door knocked on early in the morning by staff who confused us with another room. Very poor indeed.