Hotel La Merced is a small and very comfortable hotel in a great location in Colima.The staff is friendly and helpful. I recently stayed there for a week while looking for housing, and one front desk lady even made phone calls for me. The internet worked in my room, but cool and shady Jardín Nuñez is right across the street, and there are numerous stations for free internet use in the jardín.
I agree with the other review that says it's not fancy but it has everything you need. And the price is right!
They are currently re-doing the facade, so when it is finished, I will post a new photo.
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