We have just stayed for a few days at the Casa Mercedes as a post-Christmas break. The weather was warm so breakfast was served on the balcony sat looking at the views of the sea and mountains. Nerja is a very likeable town with everything you could need and more restaurants than you could possibly get through on a holiday. The beach near to the hotel (a short walk down quite a steep hill) is the best in the area. The caves just on the brow of the hill are unbelievable - easily the biggest caverns packed with stalagtites we have seen. Casa Mercedes is in a quiet sideroad and opens out onto lovely views with the dawn breaking straight across the balcony of our room. The Hostal is very well run, is welcoming, well equipped, and better than most hotels. There is parking outside and you are a ten minute walk from the beach and from the centre of town. We had one of the suites which was newly redecorated and had a more than ample balcony to sit out on and stare at the views. The smaller rooms have balconis which looked like they might miss out on some of the sun so it might be worth checking to make sure. We loved our time in nerja and wil definitely be going back. When we do so it will be back to the Casa Mercedes.
