Excellent value, location, and accommodations
I spent seven nights at Hotel Morales, from 2/21/07 to 2/21/07, and highly recommend it, without significant reservation. For $80/night, it was an excellent value, probably the best in central Guadalajara, which is why I have given it five instead of four stars.
The atrium and reception area are a lovely throwback, and comfortably appointed. Wed-Fri., a very good three-man group played in the lounge, and it was a great pleasure to sit and listen to them and sip a beer or two after a long day of wandering (when it was possible to get service, which is quite spotty in the lounge, but not a huge drawback).
The center of Guadalajara suffers from an unfortunate excess of traffic, poor maintenance of the sidewalks, and some dangers at night in certain areas (such as Nueve Esquinas) once touristically worthwhile, yet it has retained much of its essential charm.
The location for those wanting access by foot to the Centro Historico is excellent, and taxis are cheap, e.g., just five dollars ($50 pesos) to Tlaquepaque.
The renovation of the building was accomplished with great care, and the rooms are quite clean and comfortable.
The restaurant is generally mediocre, but quite good for breakfast, inclduing a delightful buffet, if so inclined, of fresh fruit and traditional mexican dishes (which the hotel prepares much better than other cuisine), such as "chilaquiles", long a favorite of mine. Anyway, who would want to eat dinnvailable nearby, such as the above average "La Chata" (excellent "chiles rellenos", average "pollo con mole poblano") or the extraordinarily lovely and excellent "La Fonda de San Miguel"?
The only hotel with a better location in the center is "Hotel Frances", but I have not stayed there, and so cannot offer a good comparison between the two. The Morales, given its significantly lower prices when I searched, would be my preferred choice on that basis, alone.