Hotel del PeregrinovsHotel Colonial
Both hotels are highly recommended by writers. On balance, Hotel del Peregrino scores significantly higher than Hotel Colonial. Hotel del Peregrino ranks #10 in Merida with positive reviews from 4 sources including Rough Guide, DK Eyewitness and Fodor's.
Hotel del Peregrino
 Fodor's
 DK Eyewitness
 Rough Guide
 Lonely Planet
Calle 51 No. 488 X 54 y 56, Centro, Merida 97000
From $33/night
- Bar/Lounge
 - Free Internet
 - Free Breakfast
 - Pool
 - Free Parking
 - Multilingual
 
 "This recently restored old home is now a comfortable and inexpensive hotel with 13 spacious rooms decorated with heavy, carved wooden furniture." Full review
 "A good value hotel lcated in a colonial house, with airy, light, and comfortable double and family rooms." 
 "A quiet, beautifully remodelled house, with an especially nice outdoor kitchen, Del Peregrino has tidy, simply furnished tile-floor rooms." 
Top choice
 "If you're looking to get away from the groovy-groupie backpacker scene, this may be the place for you." Full review
Hotel Colonial
 Lonely Planet
 Oyster
476 Calle 62, Entre 57 y 59, Merida 97000
From $50/night
- Free Internet
 - Room Service
 - Free Breakfast
 - Shuttle Bus
 - Laundry Service
 - Concierge
 
 "The Colonial features 73 comfortable rooms in a fairly modern building with a small clover-shaped pool and perhaps Mexico’s smallest bar." 
 i 
It recently renovated a few rooms; ask for a newer room.
Budget
 "The 73-room Hotel Colonial is a simple, budget property in a prime location two blocks from the Merida Cathedral and the city’s main square, Zocalo." Full review