👉 Jump to: Best Places to Stay in Oaxaca | Neighborhoods & Areas | Tips | FAQ
Oaxaca is one of my favorite states in Mexico, and I can help you decide exactly where to stay while there.
If it’s your first time, I recommend staying in Oaxaca Centro, where you’ll find art galleries, delicious Oaxacan cuisine, and plenty of nightlife and entertainment. My favorite hotel in this area is Grand Fiesta Americana Oaxaca. It’s in a walkable area and has great amenities like a spa, on-site restaurant, and gym.
Budget travelers can choose from several highly rated hostels in this area, like Iguana Hostel, which is ideal for social solo travelers who want to meet others and be in the heart of the city.
But Oaxaca has plenty of other great areas to stay in, and I’ll overview all of those too. I’ll include the pros and cons of each area, plus what to do and where to dine and drink. Let’s begin with a quick summary of my top hotel picks.
Best Places to Stay in OaxacaJust looking for a quick answer on the best places to stay in Oaxaca? Here are my top picks:
Click here to see all top Oaxaca hotels or here for apartments.
Ok, let’s do a deep dive into the best areas and neighborhoods in Oaxaca:
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Best for History & Culture
Best for Quiet & A Local Vibe
Best for A Cultural Experience
Best for A Remote Mountain Retreat
Oaxaca is the fifth-largest state in Mexico, and it has both tropical and subtropical climates. The bulk of accommodation options in Oaxaca are concentrated in the downtown area of Oaxaca Centro, also referred to as the Zocalo or city center.
Smaller neighborhoods, or barrios, surround the major city. Beyond the city center, there are beach cities and small pueblos in the countryside.
Oaxaca Centro
The eclectic interior of the Iguana Hostel around Christmas
👉 Best Area For Entertainment | ✨ Best Oaxaca Centro Hotels: Iguana Hostel • Ticuchi Hostel • Grand Fiesta Americana Oaxaca • Quinta Real Oaxaca • Grana B&B
Stay in Oaxaca Centro to be close to all the entertainment you crave. Downtown Oaxaca has it all — from art galleries to vibrant local culture, coffee shops, traditional Oaxacan cuisine, and colorful colonial architecture.
You will also find an abundance of live music in downtown Oaxaca and have plenty of opportunities to dance. If you haven’t mastered the 3 main steps of salsa, you’re likely to pick them up quickly in Oaxaca Centro. This is also a great place to go on a food tour, as many begin here.
Oaxaca Centro has a good range of accommodation options. Choose between cheap backpacker hostels, luxury hotels, or mid-range hotels, most of which are just a short walk from the Zocalo.
If you’re trying to save some money, I recommend Iguana Hostel, which has incredibly affordable rooms and a free breakfast. For something a bit more upscale, try booking a room at my #1 hotel recommendation: Grand Fiesta Americana Oaxaca.
Pros of Staying in Oaxaca Centro: Close to the main city attractions Many restaurants and bars in the area Many tours leave from Oaxaca Centro Cons of Staying in Oaxaca Centro: It can be noisy at night There can be both foot and automotive traffic Accommodation can fill up quickly on weekends and holidays📚 Oaxaca Centro Mini Guide 📚
Best Area to Stay for Entertainment
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✨ Best Hotels – Iguana Hostel • Ticuchi Hostel • Grand Fiesta Americana Oaxaca • Quinta Real Oaxaca • Grana B&B
🏠 Apartments – Browse Top Rentals in Oaxaca Centro
🍽️ Where to Eat – Casa Oaxaca el Restaurante ($$$), Los Danzantes ($$$), Lindo Oaxaca ($$)
🍸 Where to Drink – Sobrio by Mezcal Speakeasy, Cortijo La Mezcaleria, Oaxaca Brewing Co.
🎟️ Top Attractions – Zocalo, Templo de Santo Domingo, Mercado 20 de Noviembre, Jardín Etnobotánico de Oaxaca, Catedral Metropolitana de Oaxaca, Museum of Cultures of Oaxaca, Museo Textil de Oaxaca
Barrio de Xochimilco
A street in Barrio de Xochimilco
👉 Best Area For Rich History & Culture | ✨ Best Xochimilco Hotels: Santa Cecilia Hotel • Hotel La Cascada • Casa Xochimilco
Barrio de Xochimilco is Oaxaca’s oldest neighborhood, founded in 1486. It’s known for its weaving and textile production and is popular among individuals who appreciate Mexican handicrafts.
Santa Cecilia Hotel is one of the best hotels in this area. It’s clean, affordable, and the staff is kind and helpful. Plus, it’s in a super walkable area near shops and cafes, but it’s far enough from the main sites that you won’t be up all night because of noise.
This suburb of Oaxaca City feels like its own small village and has mom-and-pop eateries and family-run shops. You can also find street vendors in this area selling tamales and chapulines (fried grasshoppers).
Visit García Vigil Street, where you’ll find art that honors the famous Mexican artist Rufino Tamayo. This is also a popular destination to take a street art or walking tour among the vibrant rainbow-colored buildings and central plazas lined with agave cacti.
Pros of Staying in Barrio de Xochimilco: Away from the tourist crowds Full of vibrant street art and delicious local food No traffic Cons of Staying in Barrio de Xochimilco: Away from the tourist attractions in the downtown area Fewer entertainment options are available📚 Xochimilco Mini Guide 📚
Best Area to Stay for History & Culture
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A grand, political building of Reforma
👉 Best Area For Quiet & A Local Vibe | ✨ Best Reforma Hotels: Hotel Doña Alicia • Posada de Los Angeles • Villa Santa Julia
If you are searching for peace and quiet, look no further than the Reforma. This modern residential district is home to malls, trendy restaurants, and the political buildings of the city.
The grand colonial architecture is a major draw to the Colonia Reforma area. While it’s less visually spirited than Oaxaca Centro, this middle-class area also has an abundance of restaurants and cafes.
This is the best place to stay in Oaxaca if you want to feel like a local. Eat where the locals eat, drink at the bars they frequent, and lounge around the parks they take their dogs and families to.
While there are few hostels and hotels in this quiet neighborhood, Hotel Doña Alicia is a wonderful choice. It’s well-decorated with clean and comfortable rooms and has a tasty breakfast.
Pros of Staying in Reforma: Quieter at night and on the weekends Upscale restaurants and bars Less crowded than the downtown area Cons of Staying in Reforma: Farther away from the hustle and bustle of Oaxaca Centro Not as visually pleasing as other Oaxaca neighborhoods Fewer tours leave from here📚 Reforma Mini Guide 📚
Best Area to Stay for Quiet & A Local Vibe
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👉 Best Area For Families | ✨ Best Barrio de la Noria Hotels: Hotel Hacienda • Hotel Boutique Naura Centro • Azul Cielo Hostel
Barrio de la Noria borders the downtown area to the southeast and is another quiet, residential neighborhood in Oaxaca. La Noria’s residential area has colorful homes and local Abuela-style eateries.
It’s only a 10-15 minute walk to the Zócalo from Barrio de la Noria, so you can easily access all the entertainment the city center offers.
La Noria is the safest place in Oaxaca for families and is extremely budget-friendly. The most affordable option here is the Azul Cielo Hostel, which has a chill vibe, clean rooms, and a relaxing rooftop. But families will likely appreciate the homey-ness of Hotel Hacienda, which has a pool just for kids.
Although it’s not too far from the center, I would recommend taking a taxi back to your hotel in La Noria after a night of bar-hopping or salsa dancing instead of walking for 15 minutes.
Pros of Staying in Barrio de la Noria: Extremely quiet One of the safest places to stay in Oaxaca No traffic Affordable food and accommodation Cons of Staying in Barrio de la Noria: Far away from the main attractions Not many entertainment options in the area📚 Barrio de la Noria Mini Guide 📚
Best Area to Stay for Families
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👉 Best Area For A Cultural Experience | ✨ Best Teotitlan del Valle Hotels: Teocalli • Casa Carmín en Teotitlán • Ojo de Luna Teotitlán
Teotitlán de Valle is a pueblito (small town) in the midst of agave growing rancheros an hour outside of Oaxaca Centro.
The beautifully-woven handicrafts in Teotitlán de Valle are second to none in the country, and the romantic cobblestone streets of this small town incite nostalgia. This is one of the best places for photoshoots backdropped by hundreds of agave plants, colorful handicrafts, and rolling hills.
You are almost guaranteed to be among one of the very few tourists in Teotitlán del Valle, which adds to its appeal. Staying here supports the small community, which is an area that receives far less help from tourism. Teotitlán del Valle is also very safe. Meet friendly locals, sip on coffee, or indulge in some local, handmade ice cream.
I recommend booking a place like Teocalli, which is a small, family-run hotel with an incredible host. Expect unbeatable hospitality and a tasty breakfast. Plus, it’s quiet for a good night’s sleep but within walking distance of restaurants, cafes, and shops.
Pros of Staying in Teotitlán del Valle: Uncrowded small town It’s easier to get to know the locals Great place for mezcal tasting Near many hiking trails Cons of Staying in Teotitlán del Valle Few entertainment options Few restaurants and accommodations Farther away from major tourist attractions📚 Teotitlán del Valle Mini Guide 📚
Best Area to Stay for A Cultural Experience
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Sunset at Puerto Escondido
👉 Best Area For Beaches | ✨ Best Puerto Escondido Hotels: Hotel Arcoiris • Casona Puerto Dreams • Villas Carrizalillo • Hostal Akumal La Punta
Prefer a beach getaway? Head to the coast to soak up the sun in Puerto Escondido. Puerto Escondido is the largest Oaxacan beach town, suitable for travelers who like to be close to major amenities while still having access to small local markets with locally sourced seafood and cacao beans.
Many hotels in Puerto Escondido are right on the beach, meaning it’s easy to get to the best surf spots. Hotel Arcoiris is right on the Zicatela beach, which has some of the best surfing in Oaxaca.
Playa Carrizalillo is one of my favorite beaches, which is why I highly recommend booking a room at Villas Carrizalillo. This top-rated hotel has stairs that lead right down to the beach and many other relaxing touches – like hammocks and rooms with sunset views.
Pros of Staying in Puerto Escondido: Close to the beach Fresh seafood & friendly locals Many surf rental options Affordable accommodation options Cons of Staying in Puerto Escondido: Far away from Oaxaca Centro Beaches are far from each other Can get extremely hot during the dry months📚 Puerto Escondido Mini Guide 📚
Best Area to Stay for Beaches
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👉 Best Area For A Remote Mountain Retreat | ✨ Best San Jose del Pacifico Hotels: Bostel Rancho Viejo • Cabaña en el Bosque • Cabañas Rancho Viejo
San Jose del Pacifico is 3 hours outside of Oaxaca Centro and offers an entirely different vibe than every other place on this list. This small mountain town is old-school and many places aren’t available to book online.
Brave travelers arrive on the scene without any accommodation booked, but if this isn’t how you like to travel, I’d recommend booking a stay at Cabaña en el Bosque. It’s built into the mountains and has the most incredible views!
San Jose del Pacifico is a lesser-known destination in Mexico, one of the few tourist-friendly places that aren’t overcrowded. It’s perfect for travelers who love crisp mountain air and remote getaways. Wake up in a mountain cabana above the clouds then go on a forest trail and discover natural gems.
Pros of Staying in San Jose del Pacifico: Serene mountain environment Not an overcrowded destination Surrounded by beautiful hiking trails Cons of Staying in San Jose del Pacifico: Far away from Oaxaca City Not many tourist activities Not many accommodation options to choose from📚 San Jose del Pacifico Mini Guide 📚
Best Area to Stay for A Remote Mountain Retreat
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Just because a hotel or hostel has the price you were looking for doesn’t mean it’s top-quality accommodation. Check online reviews before you make your ultimate decision to see what recent travelers are saying about the establishment.
Even if the photos look promising, there may still be some “deal breakers” you would only know about via online reviews. I’ve learned this top Mexico travel tip from unfortunate experiences so you don’t have to.
Make Sure Breakfast is Included
Most hotels and hostels in Oaxaca include breakfast at the nightly rate. If your accommodation doesn’t offer a free breakfast, keep looking because you will likely find a hotel for the same price that offers a complimentary breakfast.
The breakfast will likely be coffee, juice, and bread, but it’s still something to give you the energy to start your long day of sightseeing.
Stay in an Accommodation Within Walking Distance of the ZocaloIf you decide to stay in Oaxaca Centro, you will want to stay in an accommodation that’s within walking distance of the Zócalo to save money on transportation.
If you prefer tranquility, there are barrios within walking distance of the Zocalo that are still quiet, like Reforma, Barrio de la Noria, and Barrio de Xochimilco. These neighborhoods are close enough to the main downtown area but far enough away to be away from the craziness of the city at night. They may be better options for people concerned about safety in Oaxaca, too.
Decide Whether You Want to Make Friends or Have a Good Night’s Rest
Me with some friends I met in my hostel
Staying in a hostel vs a hotel makes a major difference in your travel experience. Staying in a hostel allows you to meet fellow travelers, be a part of organized communal events, and sometimes even party on the rooftop.
Most times, hotels are more private. While you may still meet a fair share of other travelers, hotels are the best option if you want a quieter, more personal travel experience. Another great option for private accommodation is a rental property. You can browse a variety of rentals in Oaxaca here.
Bring EarplugsEarplugs are a travel lifesaver. This is especially true if staying in a hostel. Most times, hostels have community events or an on-site bar that can get pretty loud. Many party hostels will provide travelers with earplugs, but it’s still a good idea to travel with some just in case. These reusable Loop Ear Plugs are a great option.
Don’t Skimp on Tours in Oaxaca
It’s worth it to go on at least one tour while in Oaxaca. Whether that’s a food tour, a tour to Hierve el Agua, or the Monte Alban ruins, a tour is the best way to learn from the locals of the area.
Plan for Oaxaca’s Two SeasonsOaxaca has two seasons: the wet season from May to September and the dry season from October to April. See our guide to when to visit Oaxaca for more details on how to plan for your stay, depending on what time of year you’re visiting.
FAQs About Where to Stay in Oaxaca Where is safe to stay in Oaxaca?Because Oaxaca has a relatively low crime rate, most neighborhoods are safe to stay in. The Oaxaca Centro, Santo Domingo, Barrio de Xochimilco, Barrio de la Noria, and Reforma are all safe places to stay in Oaxaca.
Is Oaxaca a walkable city?Oaxaca is a walkable city. Most things are within walking distance in Oaxaca City. You can go at your own pace and take as many detours as you wish while exploring Oaxaca on foot.
What is the best neighborhood in Oaxaca?The best neighborhood in Oaxaca for a good location is Oaxaca Centro. It’s the most centralized neighborhood in Oaxaca, and most tourist activities and restaurants are here, as well as live music and dance bars. However, Barrio de La Noria is great for families, while Reforma is great if you prefer a quieter, more local vibe.
What are the best hotels in Oaxaca?Grand Fiesta Americana Oaxaca, Grana B&B, and Ticuchi Hostel are some of the best hotels in Oaxaca. There are many hotels, hostels, and rental options to choose from in Oaxaca, and you really can’t go wrong with any of them.
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Thanks for reading my guide on where to stay in Oaxaca! Up next, take a look at my guide the best things to do in Oaxaca so you know just what to put on your itinerary. Buen viaje!