Where to Stay in Oaxaca: Best Neighborhoods, B&Bs, and Hotels

I’ve been visiting Oaxaca since 2006 and one of the questions I get asked most is, “Where should I stay?” Over the 20 years of coming here, with and without kids, I’ve stayed in hotels, apartments, vacation homes, and B&Bs. Here’s my personal guide that will help you navigate the best neighborhoods, places to stay, and tips to find the perfect home base in Oaxaca.

Best Neighborhoods in Oaxaca City

Centro Histórico

Vibe: You’ll be in the heart of the city and action and steps away from Santo Domingo Church, museums, restaurants, bars, and markets.
Who it’s good for: First-time visitors, food lovers, and anyone who wants to walk everywhere. If you’re looking for peace and quiet, this may not be for you because there’s always something going on in the historic city center.
What to expect: Bustling streets by day, lively plazas at night, and historic charm at every corner.
Good to know: This area can be noisy at night, especially near Santo Domingo and the Zócalo during festivals or weekends.

Jalatlaco

Vibe: Artsy, colorful neighborhood with cobblestone streets, local cafes and boutiques, and lots of fun murals.
Who it’s good for: Travelers seeking a quieter bohemian vibe while staying walking distance to the Centro Histórico.
What to expect: Relaxed mornings, Insta-worthy streets with colorful homes, and friendly locals in a creative community.
Good to know: Cobblestones make it tricky for high heels, luggage on wheels, or strollers.

Xochimilco

Vibe: Residential and peaceful neighborhood with small plazas, colorful houses, and traditional Oaxacan architecture.
Who it’s good for: Ideal for travelers who want a homey, authentic experience — families, remote workers, or anyone looking for a slower pace.
Good to know: There are fewer restaurants and not much nightlife, so you may need taxis to explore.

⭐️ PRO TIP: For families traveling with children, Xochimilco is ideal. Its quiet, residential streets, leafy plazas, and slower pace make mornings and evenings easy, while nearby markets and restaurants provide convenience. Families can enjoy a safe, relaxed base away from the Centro’s crowds and noise.

Places That I Recommend

My personal preference has always been to stay at one of Oaxaca’s many boutique B&Bs when traveling – they offer a much more personal experience than chain hotels and are absolutely lovely. Most stays include a full breakfast, while others offer the basics (coffee and sometimes pan dulce).

Casa Lyobaa

When spending the summers in Oaxaca, the kids and I like to split our time between downtown Oaxaca and one of the smaller towns. We instantly felt at home at Casa Lyobaa in Mitla, which is about an hour drive outside of Oaxaca City. This is the only B&B on my list that isn’t actually in Oaxaca City.

Features: Two double beds (some also offer an additional daybed), comfy mattresses, desk, handwoven blankets & rugs, closet, ceiling fan, private bathroom with shower, breakfast, and wi-fi, access to communal pool, palapa, kitchen, and living room area.
What to expect: Hacienda-style retreat in Mitla that’s walking distance to the mercado and ruins, an amazing outdoor space and cactus garden, peaceful, slow-paced setting.
Highlights and vibe: Daily trips to the mercado (mototaxi rides were a hit with the kids!), cooking meals together in a fully stocked communal kitchen, lounging in hammocks beneath the huge palapa, cooling off with a dip in the pool. There’s also an on-site temazcal (indigenous sweat lodge) that you can reserve through Silvia for ~$45 USD per person.
Good to know: Very kid-friendly and perfect for families traveling together, hosts Sylvia and her husband Paul truly go above and beyond to make you feel cared for.

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Encanto Jalatlaco B&B

This beautiful property has amazing outdoor spaces, gardens, and is in an adorable neighborhood!

Features: Boutique B&B in the hip Jalatlaco neighborhood, guest suites have a private bathroom and shared outdoor patio lush with flowers and succulents; option to select between individual guest suites and small guest houses owned by the same family.
What to expect: One of Oaxaca’s trendiest neighborhoods, peaceful garden setting in the city, 10-minute walk from Santo Domingo, cozy and very thoughtfully designed space by locals who have been in the area for generations (not foreign expats).
Good to know: Rooms are detached for added privacy (you’re in your own little bungalow), better for families with older kids.

Estancia Valencia B&B

I stayed at Estancia Valencia with my mom, aunt, and 4-year-old son and we all loved it. The home decor, host, and breakfasts are amazing!

Features: Beautiful home with 3 guest suites (all within the home), delicious breakfast, and small, tranquil courtyard.
What to expect: A lovely, calm bed and breakfast that feels like a quiet escape after busy days exploring Oaxaca.
Highlights and vibe: Very centrally located – only about five blocks from Santo Domingo. I loved relaxing in the small patio by the fountain!
Good to know: Family-friendly, but better for older kids since all the rooms are within the home. You also have the option to rent the entire home.

La Betulia B&B

I stayed at La Betulia in 2019 during a week-long retreat with chefs, food bloggers, and fellow food enthusiasts. We all loved it!

Features: Private guest rooms within the B&B located on a quiet street, short walk (about 7-10 minutes) to Santo Domingo, delicious breakfast.
Highlights and vibe: The daily outdoor breakfasts were a highlight for me, with homemade yogurt, pan dulce, fresh juices, and classic Mexican dishes, all set against colorful, contemporary décor that’s totally photogenic.
Good to know: Loved the communal feel of this space, especially at breakfast because it allowed me to get to know other guests. The owners also rent apartments that are centrally located, if you prefer you own private space.

La Casa de Mis Recuerdos

This bed and breakfast is one of the oldest in Oaxaca and is where I stay most often when I’m in town. It’s centrally located, the courtyard is overflowing with beautiful flowers and plants, the breakfast is delicious, and the owners, Señora Conchita and her husband Moises, are simply delightful. We feel right at home when we stay here.

Features: The colonial-style house consists of 7 guest bedrooms with private bathrooms and is three blocks from Santo Domingo, conveniently located in the historic center of the city.
Highlights and vibe: Tranquil outdoor courtyard, beautiful woodcarvings, textiles, and pottery throughout the home and outdoor spaces, and the most delicious 3-course breakfast consisting of fresh juice, artisanal breads and rolls, a main course, and of course, coffee or Mexican hot chocolate. Hosts are extremely helpful and accommodating as well!
Good to know: This is a boutique B&B with simple comforts; don’t expect modern hotel features like a television, gym, or pool. Parking can be tricky if you have a car, and if noise bothers you, ask for a garden room.

La Heredad Vacation Home

Once I began traveling with more than one child, it was convenient to have separate rooms, our own kitchen, and space for the kids to sprawl out. I also like to be centrally located so that we can walk to our favorite restaurants, markets, and activities. La Herded has been one of our favorite vacation homes in Oaxaca and has the same owners as La Casa de Mis Recuerdos (mentioned above)

Features: A spacious home with three bedrooms that makes longer visits with kids (or a group of up to 6) feel easy and comfortable.
Highlights and vibe: I love having separate rooms, a full kitchen, and plenty of space for the kids to spread out, all in a beautifully decorated home.
Good to know: You’re in the heart of the action and walking distance from restaurants, markets, and landmarks. From the upstairs terrace, you can also view the calendas (street parades) that take place regularly in the summer. There’s also a washer on-site, which is a huge bonus for multi-week stays with kids. Breakfast is not included, but you have access to to a full kitchen, which I appreciate when traveling with kids who want to eat first thing in the morning.

Tips for Choosing Where to Stay with Kids

Since I typically travel with children, my criteria are ever-changing. I always research places that have:

Minimal stairs to climb and have railing (many staircases in Mexico are floating, with no railing)
Completely enclosed courtyards for kids to play outside
Portable crib (when my kids were younger)
Refrigerator to store snacks and drinks, it doesn’t have to be in my room
Central location, which changes based on where I need to be or what I need to see
Access to activities for kids, a pool is a plus, especially in the hot summer months, but typically these are limited in Oaxaca City due to water shortages
Parking (I usually rent a car and parking in Oaxaca City can be challenging, so I need a spot of my own)
Access to a mercado or grocery store, within walking distance

If you’re looking for a beautiful and historic boutique hotel experience in the heart of the action, I highly recommend Quinta Real Oaxaca. The grounds are breathtaking and guest rooms are impeccably clean, rustic, and beautiful.

I’ve only stayed at a hotel in Oaxaca on my very first visit and since then have booked apartments, homes, and B&Bs because my stays are typically anywhere between four to 8 weeks and I find that they are better options for extended stays.

I hope this guide helps narrow down your Oaxaca lodging options. If there are other places that you’ve absolutely loved, please let me know so that I can check them out the next time I’m in town.

FAQs

Is Oaxaca safe?

Oaxaca is generally considered safe for tourists. With any travel destination, use common sense – avoid carrying large amounts of cash, wearing expensive or flashy jewelry, and wear a crossbody bag if you’re carrying a purse.

When is the best time to visit Oaxaca?

It depends. I typically travel to Oaxaca in June and July, but have also been in March. If you base your travel on weather, the dry season runs from November – April and it’s warm and sunny with cooler nights. The city is busiest in November for Day of the Dead and July with the Guelaguetza, an annual cultural celebration that takes place at the end of July. Just keep in mind that summer is Oaxaca’s rainy season so it can be hot during the day with unpredictable torrential downpours.