Where to Stay In Oaxaca: Guide to the Best Areas and Hotels

When you ask a Mexican about the best food in Mexico, many will point you to one city: Oaxaca. It's a foodie paradise with some of the most delicious Mexican dishes originating from there so naturally, I'm a big fan of Oaxaca! Hands up, if you're a foodie too!

Oaxaca used to be a small city in southern Mexico, but nowadays it's a must-stop on every travel itinerary. The city is incredibly beautiful, with its charming colonial-style city center, amazing salsa scene, beautiful surroundings, and the best Day of the Dead festivities in Mexico.

Once you visit Oaxaca, you will probably come back wanting to spend more time there. So after my trip, I thought it's more than enough reason to help you guys out with this guide and save you the hassle of figuring out where to stay in Oaxaca.

The 5 best areas to stay in Oaxaca

The city of Oaxaca is divided into different districts, each with its unique character and charm. But in general, the districts in and around the city center are where you want to stay.

That way, you'll have easy access to all the amazing restaurants and markets in central Oaxaca.

If you're a first-timer, Centro is my top recommendation for you. You'll be right in the heart of the city with some of the best hotels and restaurants around.

For nightlife lovers, Santo Domingo, just north of Centro, is the place to be. Their wine and salsa bars are absolutely amazing and the absolute best spots to go to at night.

If you're on a budget, look for good accommodation deals in the north of Oaxaca, specifically in the more residential neighborhood of Reforma. It's got some more local vibes too.

Jalatlaco is one of my personal favorites because it has such chilled vibes and offers some of the best food around. So if that's what you're after, definitely consider staying here.

And lastly, if you're after a more authentic and cultural experience and you love markets, Zocalo is the area for you.

1. Where to stay in Oaxaca for the first time: Centro

If you're visiting Oaxaca for the first time, Centro is definitely the place to be. It's filled with adorable cobblestone streets, beautiful colonial architecture, and some of the most delicious food in town.

One of the things I absolutely love about Centro is how pedestrian-friendly it is. You can easily explore the area on foot, hopping from one place to another without needing any transportation.

And of course, there are all the plazas, churches, museums, and tons of other cultural sights that you to check out during your stay.

But the best part, in my opinion, is that if you happen to be here during the Day of the Dead, Centro just transforms into one massive festival. You'll see parades, people dressed up, face paint, street food everywhere, and colorful decorations and altars.

It's a truly magical and one-of-a-kind experience that I highly recommend if you're here in November.

Best area for:

• First-timers

• Foodies

• Celebrating the Day of the Dead (Dia de los Muertos)

Things to do in Centro 

Centro is packed with plenty of fun things to do for you. Even just wandering around the city center of Oaxaca city is honestly more than exciting and fun.

One of my favorite landmarks is the Oaxaca Cathedral, which is stunning. It's located right in the center of town, you can't miss it. If you're there during Christmas time, they also have a huge nativity scene set up in front of the Cathedral.

Another must-do while in Centro is to try some traditional mole at one of the many restaurants or markets. Mole is a delicious sauce made from a variety of ingredients, including chocolate, chili peppers, and spices. It's a staple dish in Oaxaca, and you definitely can't leave without trying it.

Since we're on the topic of must-try traditional things, Mezcal is another thing you have to try. I recommend you check out La Casa del Mezcal for some of the most amazing traditional mezcal in town. Yes, they serve beers too, my partner prefers that too!

And if you happen to be in Oaxaca during the Day of the Dead, the historical centre of town is where all the action happens.

There are parades, concerts, street food vendors, and people dressed up in traditional Day of the Dead attire. It's an experience unlike any other and definitely worth checking out.

Best hotels to stay in Centro

($$$) Pug Seal Oaxaca

One of my favorite boutique hotels in the Oaxaca city center, Pug Seal offers luxurious rooms with a charming and cozy design. The staff is incredibly friendly and helpful, making sure you have the best stay possible.

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($$) Hotel Casa Antigua

For a more traditional and authentic stay, Hotel Casa Antigua is the perfect option. It's a renovated colonial-style house with beautiful rooms and a lovely courtyard. They also have an amazing in-house restaurant serving up delicious Oaxacan dishes.

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($) Hotel Parador de Alcalá

Located in the historic center and within walking distance of the Oaxaca Cathedral, Hotel Parador de Alcala is one of my top budget-friendly picks. It offers clean and comfortable rooms at a great value for money and even features an outdoor swimming pool.

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2. Where to stay in Oaxaca for the best nightlife: Santo Domingo

Another awesome option, especially for those who love nightlife (but honestly, anyone would enjoy it), is the area of Santo Domingo.

It's located just north of Centro and has a similar vibe with its charming cobblestone streets and interesting architecture.

But what makes Santo Domingo stand out is its super fun nightlife scene. You'll find some of the best salsa and wine bars in town that are absolutely worth exploring at night.

And if dancing isn't your thing, don't worry! There are plenty of great restaurants, rooftop bars, and live music bars where I had a great time. My favorite little spot for dinner and cocktails is Los Danzantes, just around the corner from Santo Domingo Church.

The whole neighborhood revolves around Santo Domingo Church, or Santo Domingo Cathedral, a Catholic cathedral built in 1550. It is one of the most significant landmarks in Oaxaca and is definitely a must-see when you're in this neighborhood of Oaxaca.

Best area for: 

• Nightlife

• Foodies

• Couples

Things to do in Santo Domingo 

Besides exploring the amazing nightlife, Santo Domingo offers a bunch of other fun things to do. One of the highlights is the Oaxaca Textile Museum, just a short walk from Santo Domingo Church. You'll get to see traditional textiles and clothing from indigenous communities in Oaxaca.

Another cool activity is checking out the mezcal bars in the area and learning about how this iconic drink is made.

My personal favorite is Cortijo La Mezclaeria. You can simply ask to try different types of mezcal, and they'll happily provide you with a little tasting board. Not only that, but they'll also share some interesting information about the production.

Lastly, here's a secret tip for organic food lovers: visit La Cosecha, the organic market in Santo Domingo. You can grab fresh produce, and there are also plenty of food stands. On top of that, the place has a super chill hippie vibe, so it's a great spot to hang out and enjoy some lunch.

Best hotels to stay in Santo Domingo

($$$) Holiday Inn Express

Conveniently located within walking distance of the Santo Domingo Church, Holiday Inn Express offers modern and comfortable rooms. The hotel also has a great breakfast buffet every morning, perfect for starting your day right.

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($$) La Casa Carlota

For a boutique hotel experience, La Casa Carlota is the place to stay. It's a beautifully designed colonial-style house with spacious rooms and a lovely outdoor terrace. The staff is also incredibly friendly and helpful. So if you're looking for a small, intimate setting, then it's one of the best hotels in Oaxaca City.

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($) Mision De Los Angeles

If you're looking for an affordable resort-type hotel, Mision De Los Angeles is a great option. It offers comfortable rooms with all the necessary amenities and has two beautiful outdoor pools and an onsite restaurant as well.

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3. Where to stay in Oaxaca for budget travelers: Reforma

If you're looking for a more relaxing getaway away from the hustle and bustle, and also want to stick to a budget, then the neighborhood of Reforma in the north of Oaxaca is my top recommendation for all you budget travelers.

But even families and couples looking for a quieter city break will have an amazing time staying in Reforma. 

The area has a more modern feel compared to the historic center, but it's full of charm and offers plenty of shopping opportunities as well.

The food scene is great, with some amazing traditional markets and restaurants to explore. And hey, even if you feel like spending more time in the city center, it's just a quick 15-minute taxi ride away.

Best area for: 

• Budget travelers

• Families

• Couples

Things to do in Reforma

Reforma is a little outside of the city center, but don't let that discourage you. It may not have as many tourist attractions, but it still has a lot to offer and serves as a great base for exploring the rest of Oaxaca.

You'll find some amazing foodie spots in Reforma, like Casa Oaxaca Reforma, where you can try high-class dishes, including wild boar and incredible mole, for a very affordable price.

Another place I loved was Los Chavales de la Barriada, an Argentinean restaurant that serves the most incredible empanadas.

However, one of the best things about Reforma is that it's not as crowded as the Oaxaca city center. It's the perfect place to rent a car and head out on some adventures.

You can visit nearby Monte Alban, one of Mexico's most famous archaeological monuments, or take a few days to explore Puerto Escondido, one of Mexico's top surf towns on the coast.

Best hotels to stay in Reforma

($$$) Hotel Boutique Casa de Arte

Located in a central location in Reforma, Hotel Boutique Casa de Arte is a beautifully designed boutique hotel with spacious and comfortable rooms. This luxury hotel is absolutely one of my favorite boutique hotels, and it even comes with an outdoor pool and hot tub.

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($$) Casa El Mundo

Located in the heart of Reforma, this beautiful boutique hostel offers spacious and stylish rooms with traditional Mexican decor. It's a great spot for backpackers as well, with a shared kitchen and dorm options available.

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($) Villa Santa Julia

Located in a quiet and peaceful area, Villa Santa Julia is a charming aparthotel with fully equipped apartments and great amenities. It's perfect for families or couples looking for a relaxing and budget-friendly stay in Reforma.

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4. Where to stay in Oaxaca for the coolest vibes: Jalatlaco

If you're looking for a truly unique and alternative experience in Oaxaca, let me introduce you to the cool neighborhood of Jalatlaco!

With its cool street art, local markets, local art scene, and hip coffee shops and bars, this place has it all. Honestly, you'll find museums and art galleries wherever you go, giving it that awesome hipster vibe that I absolutely love.

Jalatlaco also boasts a strong sense of community, giving you a glimpse into the everyday life of Oaxaca. The charming colonial-style buildings lining the streets create a picturesque scene, and the lively atmosphere is simply irresistible.

Best area for:

• Young travelers

• Art lovers

• Foodies

Things to do in Jalatlaco

One of the highlights of Jalatlaco is its incredible street art scene! You'll be amazed by the numerous murals waiting to be discovered as you wander through the neighborhood.

Make sure to also check out the local markets where you'll find a wide variety of traditional crafts and products, perfect for picking up souvenirs.

And let me tell you about my absolute all-time favorite place in Jalatlaco – Boulenc! This charming café stole my heart. In the mornings, they have a bakery section where you can grab freshly baked bread, pastries, and coffee.

And at night, they open their cozy courtyard with a wood-fired pizza oven. Trust me, their pizzas are hands down the best in Mexico! It's a must-try for anyone craving a change from all the delicious Mexican food.

Best hotels to stay in Jalatlaco

($$$) Los Pilares Hotel

One of the best luxury hotels in town and also the most beautiful, Los Pilares Hotel is located in a beautifully restored colonial building and offers spacious and stylish rooms with traditional Mexican decor.

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($$) One Oaxaca Centro

Much more basic, but therefore modern and clean, One Oaxaca Centro is a great budget-friendly option located within walking distance of Jalatlaco.

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($) El Rincón de Doña Bety

Centrally located in Jalatlaco, this charming B&B offers cozy and comfortable rooms with a shared kitchen and living area. It's a great budget option for travelers looking to experience the neighborhood like a local.

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5. Where to stay in Oaxaca for a cultural experience: Zocalo

Last but not least, we have the Zocalo neighborhood. This is technically in Centro, right in the centre where you'll find the main square of Oaxaca, which is surrounded by beautiful colonial buildings and buzzing with life.

The streets around the Zocalo are the perfect place to stay if you want to be in the heart of all the action and experience the local culture firsthand.

During the day, you can check out the local markets, museums, and galleries within walking distance. At night, the Zocalo comes alive with street performers, live music, and food stalls serving up delicious Mexican snacks.

Best area for:

• First-time visitors

• Culture enthusiasts

• Nightlife lovers

Things to do in Zocalo

As mentioned earlier, you'll find a variety of markets, museums, and galleries in the Zocalo.

But one thing you can't miss is trying some traditional Oaxacan cuisine at one of the many restaurants in the area. Be sure to try dishes like mole, tlayudas, and mezcal!

For a fun and unique experience, I recommend taking a cooking class or food tour around the Zocalo. You'll get to learn about the local ingredients and techniques while also getting to taste some delicious dishes.

When it comes to markets, the Zocalo has a few options to choose from. The Mercado Benito Juarez is great for traditional souvenirs and food products, while the Mercado 20 de Noviembre is known for its delicious street eats.

As a taco addict, I can totally recommend trying the tacos de asada (flank steak) at this market!

Best hotels to stay in Zocalo

($$$) Hotel Ferri

Located just a few steps from the Zocalo, Hotel Ferri offers modern and comfortable rooms in a charming colonial building. I loved the courtyard, which was perfect for relaxing after a day of exploring.

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($$) Hotel Real Alma

Another great option for those looking for a budget-friendly stay, Hotel Real Alma is located just a block away from the Zocalo and offers cozy rooms with traditional Mexican decor. The best part here is definitely the rooftop terrace with beautiful views of the city.

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($) Parador San Agustin

This is one of my favorite budget Oaxaca hotels, and it's located right in the Zocalo neighborhood. The hotel is located within a beautifully restored colonial building with a charming courtyard, and the rooms are cozy and clean.

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Where to stay in Oaxaca – Frequently Asked Questions

📅 How many days should I spend in Oaxaca?  

I would recommend spending at least 3-4 days in Oaxaca to fully experience all that the city has to offer. However, if you have more time, it's definitely worth staying longer to explore the surroundings. You can take some amazing day trips from Oaxaca, like to the nearby Hierve el Agua or the stunning ruins of Monte Alban.

🌆 Which one is better: Mexico City or Oaxaca City?  

They are so different and it really depends on your preferences. Mexico City is a massive metropolis with amazing food, art, and cultural scenes. Oaxaca, on the other hand, offers a more laid-back and traditional experience with its colorful markets, history, and culture. But of course, if you have the time, I would recommend visiting both cities to get a taste of different sides of Mexico.

🧐 What is there to do in Oaxaca?  

There's a ton of awesome stuff to do in Oaxaca! You can explore ancient ruins, check out vibrant markets, indulge in delicious traditional cuisine, join in on festivals and celebrations, witness how Mescal and Tequila are made and dive into the rich history and culture of the region. And if you're up for it, you can even give a Temazcal a shot – it's a traditional Mexican ritual that's definitely not for the faint-hearted!

🔝 What is the best part of Oaxaca?  

That's a tough question because Oaxaca has so many amazing aspects! But if I had to choose, I'd say the food and the people are absolute highlights. The food in Oaxaca is simply incredible, ranging from street food to high-end restaurants that serve up traditional dishes that will make you fall in love with the city. And let's not forget about the warm and welcoming people who make your stay in Oaxaca even more enjoyable. And on top of that, you definitely don't want to miss the incredible Day of the Dead celebrations when you're in Oaxaca.

Where to stay in Oaxaca – Final words

Ultimately, Oaxaca is one of my favorite places to visit in Mexico. Not only does it offer an amazing combination of food, culture, and markets, but its reasonable cost also makes it accessible to all types of travelers. 

It's also relatively small, which makes navigation and exploration even easier when visiting Oaxaca City. Personally, I'm a big fan of walkable cities, so that's a major plus!

Make sure to consider all the information from this guide when deciding where to stay in Oaxaca. But no matter which neighborhood you choose, I'm confident you'll fall in love with this charming city.