Right in the corner of Plaza de Armas there is this hotel which also has a nice bar/restaurant on the first floor. You can sit on the balcony and have a nice overview of all that’s happening on the plaza. Food was good, as we’ve lunched here twice. The vegetarian sandwich was my favorite (although I’m definitely not vegetarian myself), but all the food was looking good.

Lovely hotel off (rooms are not on) the central plaza. Clean and tidy with good staff. Excellent cafe on 2nd floor with views over the square. Exceedingly noisy. Taxis use their horns all night and the sound insulation is poor. Feels like you’re sleeping in the middle of the road most of the time.

Overall would recommend enjoying the cafe which is open to the public during the day. Would suggest but staying elsewhere where sleep is a realistic prospect.