Casa de la Cuesta, San Miguel de Allende $$$$
Concierge.com's insider take:
Set on a hilltop just above the city center, this rose-colored colonial inn, with its pair of courtyards, tiled floors, and seven spacious rooms with private terraces, has some of the best views of the city. Owners (and U.S. expats) Bill and Heidi LeVasseur use their walls to display the work of local folk artists; in your room you might find ceremonial masks, paintings, ceramics, and weavings hanging above your bed or private fireplace. The LeVasseurs have such an extensive collection that there's a gallery of folk art and masks on site—known as the Other Face of Mexico Gallery, it's open by appointment. Walking downhill into town doesn't take much effort, but walking back up the hill is a workout—save some pesos for a cab.—Maribeth Mellin
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