This place is a fine place to stay for a few days if you want to be in Centro (downtown) Montevideo, as I did. I was passing through from the Punta del Este beach resorts, back to Buenos Aires via the hydrofoil ferry. The ferry dock is close-by, as is the Ciudad Viejo (the Old City) of Montevideo. As it's not safe to walk around the Cuidad Viejo at night, I did not want to stay there. While the area around the Hotel Lafayette looks quite grim and dirty, it is perfectly safe for pedestrians at night. Fact is, there are dozens of eateries near-by, from semi-fancy to everyday cafes, all of which are good and reasonably priced.
All the other reviews of the Lafayette, except for the most scathing, are accurate. This is NOT a luxury hotel. If you freak-out when everything isn't perfect or brand-new, go elsewhere!
Forget the 5-star rating. I think this is the hotel's own rating and not a government rating. It is definitely a 2.5-3.0 star (out of 5 stars) hotel. That said, the rooms are clean, the furniture is blond, danish-y modern and the mattress is very comfortable. Sheets are cotton and while the pillows are not plush, I've not found one hotel in Uruguay or Buenos Aires that has plush pillows. (I can't comment on the Four Seasons, Park-Hyatt, Ritz-Carlton or Alvear Palacio of Buenos Aires.)
I opted to pay a bit extra for a "Deluxe Room." I think I got a bit more space, a higher floor and maybe a newer room (not sure.) If you can afford it, opt for this type of room. Other than a very, very slow internet connection (I'm spoiled & used to a very fast internet connection,) I have been very happy here.
The front desk staff and breakfast staff could not be more pleasant or helpful, and most speak perfectly good or basic English. I didn't have a car, but that's a huge bonus, to be able to park for free here!
Also, all the major bus lines of Montevideo cross through Centro within a few blocks of the Lafayette. The # 121 bus going East (a block or two north from the hotel) will take you to the beaches of fashionable Punta Carretas or Pocitos, as well as the huge Punta Carretas Shopping Mall and the Sheraton Hotel, near to the last stop on the line. And, if you head West, the # 121 goes to the Ciudad Viejo and drops you off a block or two away from the Mercado el Puerto. The latter has the most amazing array of traditional 'asado' restaurants all grouped inside an old factory, and worth seeking out.
Lastly, but NOT least: the Lafayette, as others have said, has a great breakfast buffet. The best I've come across in South America! Delicious and plentiful coffee, hot milk, hot chocolate, freshly squeezed orange juice, scrambled eggs (yummy, perfectly cooked & not runny!) and American bacon, among tons of other selections.
All-in-all, I liked this hotel and thought it a bargain for about US$ 90/night. You could do much, much worse.
- Lafayette Hotel Montevideo
