Named for its location, the former site of the New Mexico governor's mansion, the Inn of the Governors offers a high level of service and reasonable rates for being only three blocks from the plaza. The Territorial-style building has three levels of guest rooms (plus suites), decorated with boldly patterned Native American rugs, handmade furnishings, and Mexican-tile bathrooms with full-sized tubs. Deluxe rooms have balconies and fireplaces, while some of the standard rooms are small. (Ask for a room that doesn't overlook the parking lot or the road, which can get noisy at night.) Rates include free parking (a score in Santa Fe), a full buffet breakfast, and daily tea and sherry in the lobby. There's even a heated outdoor pool that's open year-round. Head down to the hotel's Del Charro Saloon for inexpensive food and monster-sized margaritas until midnight.