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