Four of us stayed at the Qualitel in MOrelia yin July, my two parents, my sister and I. WE stumbled upon it after I had checked for prices on the main sqaure and they were astronomical.

The taxi driverf told us it was a popular hotel and we decided to stay (4 per room for about US$70).
The rooms are tiny, you have to jump over one of the full beds to gt to the tiny closet. There's a TV in the room and the bathrooms are like European-sized showers. The rooms were very clean, though.

The price included breakfast but after a watery plate of beans and scrambled eggs, my dad would not eat it on the second day. I had a small box of cereal with warm milk for my breakfast.

Also, the hotel is NOISY! I mean, ridiculously noisy, so if you're a light sleeper, like myself, you will struggle a bit to get to sleep. We opted for keeping the TV on all night so that we could avoid the sudden noise of kids walking in the hallways are doors slamming shut. Our room had one window, which led to the window of another room (not that we would open it because we could hear even more noise). It seems like the space between the windows serves as an exhaust from the kitchen because as we opened the window in the morning to let in some air, we would get the smell from the kitchen of whatever they were cooking.

The hote is about 5 blocks from the main square and 1 block from the candy market, which is convenient.

You are able to book tours from the same hotel and they take care of everything. We did a tour to Patzcuaro and it was great.

Overall, if you must stay somewhere in Morelia, go ahead, but it won't be comfortable, though it WILL be clean. If you can afford somewhere closer to the main square, I reccomend Hotel Alameda.