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I think the Red Tree House (.com) is a nice place to stay in Mexico City.
Here's a couple places to check out in Mexico City. I've stayed in each and like the proximity to the Condesa and Roma neighborhoods. Jay's recommendation is good too.
www.hotelescandon.com
www.hotelmilan.com.mx
www.condesahaus.com
The first two are more like hotels. Condesa Haus and Red Tree are B+B's and have a complimentary breakfasts with fruits, juices, cereal, bread...all good stuff. Hope this helps!
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