My girlfriend and myself stayed there to visit "Las pozas de Edward James" and since El Castillo was fully booked they recommended us hotel dolores which according to our walkarounds in xilitla seemed like the second best choice after El Castilo. Especially for the price, one night cost 230 pesos (around 20 dollars) for the most basic room was basic but nice.
Let me tell you about our trip in a chronological way.
To do a reservation you have to make a deposit of 50% to their account and then fax them the receipt. I didnt work that well because they have a combo fax tel machine and the lady that was there did not know how to operate it so I spent quite a while on sneding the fax and then it didnt work so the same day I tried late at night and then it worked (people that work at night at hotels are usually more competent).
When we got to our room at 2 pm it was ready and we checked into room #2. first thing we noticed that there was only one towel but that didnt matter to us because we had our own. I am sure we could have asked for another.
We then also noticed that there were some ants on the floor and wee soon discovered where they came in and we filled the holes with soap and then we didnt have that many ants anymore in our room after we killed most of them, the ants were only on the floor not on the bed and furthermore they were small and black not angressive ants. It didnt matter too much to us.
The night was very calm however during the night there was a blackout and it remained until we checked out especially in our room there was no electricity, everywhere else in the hotel the electricity came back early in the morning. (how weird!? makes you wonder).
upon check out we paid the remaining pesos and left.
Xilitla itself is not really worth visiting, the food is not great: your best bet is probably "Cayos" and small "comedor" called "rincon huasteca"
However "Las Pozas" is a great experience and made the 7 hour drive from monterrey worth it.
So if you do no want to spend too much on accommodation then hotel dolores is your best bet, also take into consideration that they do not have any fnb facilities.
But if you want too have the full edward james experience i recommend you to book early for el castillo since it is fully booked very fast and it isnt that expensive either.
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