This article is from the April 1996 The Mexico File newsletter.
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Puerto Escondido, Hotel Information

Hotel Arco Iris: Tel: 011-52-958-204-32. This would be my first choice, regardless of price. Twenty large rooms, all facing the ocean with private patios. All ages fit in quite comfortably here and the open air restaurant serves good food. The swimming pool is a bonus, since the ocean out front might kill you. Some of the rooms have small kitchens and are booked by long term visitors. In season doubles are 140 pesos ($19 US), a little more for the rooms with kitchen. Street addresses are rarely used on Zicatela Beach, but it is about half way down the row of hotels.

Beach Hotel
Ines: Tel: 011-52-958-207-92. The Voss family has created a diverse, beautiflil enclave among a palm grove just down the beach from Arco Iris. The bamboo, thatched roof cabins are a bit rustic but the surfers find them perfect for 75 pesos ($10 US). A comfortable double room will cost 180-210 pesos ($25-$39 US). The pool and restaurant attract visitors worldwide, and the menu changes daily to prepare what is fresh. The only negative is there is no ocean view from the rooms, blocked by the palm trees.

Hotel Santa Fe: Tel: 011-52-958-201-70. Is it worth paying 3 to 4 times as much for a little more luxury? Maybe if you're on your honeymoon. If you want to spend $75 US this is a your place. If you don't stay here, at least try the restaurant for a romantic evening. Its location is right between where the safe swirnming stops and the huge waves begin, so either option is close by. Very serene environment with a swimrning pool and air conditioned rooms.

Hotel Paraiso Escondido: Tel: 011-52-958-20444 This in town hotel reminds you of an old villa turned art gallery. All of the air conditioned rooms are different and have original artwork. Many of the upper rooms have terraces with ocean views and there is even a colonial style chapel. To complete the eccentricity, there is a 1929 Ford Model A parked near the entrance. The restaurant serves excellent food and there is a swimining pool. The beach takes four or five minutes to walk to. This is the Bahia Principal, where the boats dock, but it is safe for swimming. The Playa Zicatela is about ten to fifteen minutes away by foot. Doubles are 450 pesos ($61 US), a little steep in my view.

Others: There are many other choices available. The above are the ones I liked best. If anyone can add to the list of recomrnendations, please do so.