Mexico or Morocco? If the above photo is any indication, the boutique hotel scene in vibrant Oaxaca City is growing more and more intriguing by the day. Whether you want to be transported to the city’s historic roots, surrounded by minimalist architecture or fascinated by a blend of past, present and cultures alike, these beautiful boutique hotels are offering it all – not to mention a serious dose of rest & relaxation for your stay in the cultural (and literal) capital of Mexico’s Oaxaca state.