Built in the 16th century by Martín Cortés (successor to Hernán Cortés as Marqués del Valle de Oaxaca), this former sugar mill was renovated in 1980 and boasts 23 rooms of various levels of luxury, each with its own private garden and terrace. There’s also a swimming pool built around old stone columns, a gym and an excellent restaurant.
It's approximately 5km southeast of the center of town. Book months ahead for weekends. Good online promotions available via the website.