San Miguel de Allende, Mexico?

While staying in Querétaro mention above is a good idea, staying in Celaya would not be.

A trip that includes Querétaro, San Miguel de Allende and Guanajauto is very nice. The towns are close to each other and different. Queretaro is well run large city with a fine large historic center. It doesn't get the attention it deserves. Guanajuato is like no other place. It and Querétaro are among my three favorite places in Mexico to be at night. The other is Taxco.

For me the problem for with San Miguel is that many people are aware of it and not of other places that are equally nice or superior. It is not touristy in the sense of packed with tourist or having tacky shops. The town is one of the best preserved in Mexico.

You will hear English spoken by American and Canadian tourist or by members of the large ex-pat community. That bothers some people, but the majority is still local Mexicans and Mexican tourists. I have no problem practicing my Spanish in San Miguel. Some restaurants and bars are popular with ex-pats and well to do Mexicans. When in San Miguel I tend to eat at places frequented by ordinary Mexicans.

San Miguel does have excellent restaurants. For a splurge, I highly recommend El Campanario on Canal. Ask for Chef Felix and have him suggest your courses. Tell him Juanito sent you. One of the people who have done as I recommend is someone who has been going to Mexico for years. He e-mailed me to say that the meal at El Campanario was the best he ever had in Mexico.

A good simple place is La Piñata at Umarán and Jesus. But roam around and find places that strike your fancy.

I have rented an apartment for a few weeks in San Miguel. When I have stayed in hotels, I have used two good bargain places, Hotel Sautto and Parador San Sebastian. The San Sebastian has few rooms on the front courtyard that are very charming. All the rooms have the same price, but you can't reserve ahead of time. It's been 3 years since I stayed there. Then it was 300 pesos a night.

Posada de Monjas is a little more. The rooms vary in size. I have never stayed at the Quinta Loreto, but I know of people who like it.

It's not a hotel but it's a sort of bed & breakfast..... I stayed there and it's fine, close to downtown and with basic facilities (bed, a sofa, cable TV and a closet/drawers to keep your clothes... private bathroom as well, a bit too small but enough), breakfast included. It costs like 40 USD per room per night.

It's called Casa de la O, located at Indio Triste street, 17-A. I do think this (or any other B&B) is a better option than a hotel, because they ARE overpriced. And yes, there are some nice restaurants in San Miguel....... The 2 I liked the most were "Pueblo viejo" (just a block away or so from the main square in downtown) and CAFE DE LA PARROQUIA in Calle de Jesus street -- this one is nice for breakfast-brunch but it's usually crowded, so get there early...

Click the link below and read reviews for the Parador San Sebastian.

SMdA is extremely touristy and hotels are overpriced, i would recommend staying in a hotel in either Celaya, or better yet, Queretaro, and then exploring from there. you can rent cars cheap at thrifty in leon, or you can ride the bus, plenty of buses from celaya or queretaro