Popayán has some good accomodation option in the town center like the beautiful and only 5 star hotel in the city: the Dann Monasterio. For a mid-range hotel, try the Hotel Popayán Plaza, also a good place for a cheap but very good set lunch. Cheaper, the Caracol hostel has good facilities for backbackpers.
Slightly outside of town is the tiny Campobello Bed and Breakfast, a lovely and very peaceful B&B.
=> During Easter Week (Semana Santa), prices go up and you absolutly need to book in advance.
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