For the price (I paid $33 per night plus taxes and fees for a double room), this is a very solid choice. It has a nice pool and restaurant, and its layout definitely puts you into a vacation mode. The rooms are spacious enough and clean, have hot water and air conditioning, and secure gated parking (uncovered) is available.

The only true disadvantage to this hotel is its distance from the centro, which is a pretty significant walk, or a taxi (50-100 pesos) each time you want to go anywhere.

Some of the complaints in the other reviews make me laugh: if you're expecting high-end U.S. standards for less than $40 at a major travel destination (almost anywhere, really), you may need to recalibrate those expectations. Fancy hotels are definitely available in Oaxaca, but be ready to pay U.S. prices for those standards! For everybody else, this is an awesome choice that is scenic, relaxing, and good for both business and family.

Nice individually set rooms. Comfortable and added pleasure of having a swimming pool.
Good restaurant, but breakfast choices were a bit limited. Didn't see any lift, so access could be an issue to the first floor. The hotel was very quiet, so being on the ground floor near the pool was not an issue.