Fantastic place. Yes it is old, and this is what it is all about: it is beautiful. The rooms are rustic but very atmospheric and the log fires in both our rooms made them very cosy. We stayed 5 nights and we would have loved to stay longer (Tim worked in Quito and easily commuted between Guachala and the city).
Lots to do aroudn Guachala: The stunning hot springs of Oyacachi (Guachala can organise a taxi to get you there if yu do not have your own car), the un-touristic market of Cayambe, great horseriding, star gazing and just walking and exploring the nearby village. The festival of IntiRaymi is a must too and can be easily attended from the hacienda.
It is a great place far from the "Disney world" version we experienced later in more upmarket haciendas.
The only little complain: the kitchen is almost deserted and it was not easy to know when we could eat.
Our 3 childre, 8, 13 and 15 absolutely adored the place.
The owner is very nice, knowledgeable and speaks perfect French (and english)
We will certainly go back. I hope it never get redevelop as one of those veru plosh haciendas that have lost most of their genuine historial feel.

The hacienda is OLD! You feel the age not because the place is a tiny bit run down, but because it has this special atmosphere. It is almost like sleeping in a museum. And for me, a European without any previous experience with South America it was a place taken out from an adventure novel written a century ago!
If you like adventure, go there! If you prefer comfort, stay away - the room we had (in the old building) was about 4 meters high and very cold. We couldn't get the fireplace going, as the wood was too moist. The bathroom was clean, but very old and run down. The room was very atmospheric, but the bathroom was ugly, actually the only thing I did not like about the Hacienda experience.
We stayed off-season (or so it seems) as there was almost nobody else staying there with us (which was a good thing, made the whole adventure feeling even better). The pool area was closed, which was a pity, as it would be like bathing in a botanic garden - the pool is situated in a kind of greenhouse with lots of exotic plants around.
I loved the picture gallery in the church, it showed the hacienda's and the owners' history, and made me feel like a guest at someone's house, as opposed to a tourist at a hotel.
I cannot remember the food anymore, but I guess it is a good sign - if it was bad, I would remember it!

We stayed here while exploring the Cayumbe area between Quito and Otavalo in July 2007. Guachala is the oldest Spanish hacienda in Ecuador with an illustrious list of presidents and dignitaries as past owners and guests. Built around 1580 it is a grand old plantation style estate with ecclectic rooms and Andean decor.
We enjoyed walking the grounds and discovered a large recreation room containing a pool table, computers, conversation areas and library with Time magazines dating to the 1960s. Inside the chapel is an extensive photographic history of the hacienda and the area-- fascinating!
They didn't have a regular matrimonial (double) room available/ready. Even though we showed up without notice or reservations, they gave us room "M" with over 1000 sq feet and 4 beds for the same rate. The fireplace in the center of the room was stocked with eucalyptus kindling and a large basket of firewood. Making a fire was romantic and using it to stay warm was reminiscent of the hacienda's more glorious days.
Unfortunately, this magnificent place has seen its better days... paint is peeling, windows cracked and ceilings are falling down. I believe the current proprietors have done alot to make it this inhabitable with charming rooms. But, I think it would cost a fortune to restore its grandeur.
I recommend staying here for the historical significance and the serenity, just don't expect any posh. Also, the dinner and breakfast we had here was wonderful and reasonably priced.
Just after leaving the hacienda heading north toward Otavalo, stop at Quitsato-- the official middle of the world (yep, another one). We heard a wonderful presentation by Christobal of Hacienda Guachala which is hosting a group of geologists and archeologists studying the phenomenal ruins atop the adjoining mountain.