Posada del Angel
Posada del Angel is located right in the colonial center of Cuenca. The building was built in colonial style and was built about 120 years ago by order of a local priest. The building has since been thoroughly restored. Today the hotel is run by a local family and has 22 rooms. There is a small restaurant, but you can also go into town for the many cozy restaurants in the city.
For more information see hostalposadadelangel.wordpress.com