Coyoacán

Suites Coyoacan
Avenue Coyoacan 1909 Colonia del Valle Mexico City 0310
$100

Standard hotel that offers comfortable sized rooms at an affordable price. The location is the big drawcard though, less than a block from the Coyoacan subway station, which is about a half hour from downtown. It is also within walking distance 30 min to two parks that have really great restaurants all around.

There are not many hotels and hostels in Coyoacan, but do try the following:

Coyote Flaco Backpackers
Av. México 112, Col. Del Carmen

Hostel that has 40 rooms all with private bathrooms. Great place to meet fellow travelers, and the staff and helpful and friendly.