I stayed one night with my girlfriend as we had a flight the next morning from Guatemala City. First of all we went to the wrong hotel as there is also a Hotel Ajau (not Colonial). A hotel staff showed us then the way to the Colonial just the next block. Staff is friendly and rooms are spacious and clean. We've been given room no 1 right next to the reception. It was really noisy till late and again very early in the morning. In the shower only cold water was available. As it was a hot it wasn't a big issue for me this day but generally not acceptable for this price. The bathroom was also a bit old and used (not dirty). In the end I think a bit pricy but with another room, not having the issues above, I think it's ok.
We stayed for one night at Hotel Ajau Colonial, and were very happy with it. The building itself is gorgeous with a sun lit courtyard with a fountain. The room had everything we needed, nice beds, TV and hot water in the bathroom. If we were to stay again for longer, maybe I'd spring for one of the more luxurious rooms - but for this we just needed something basic. I would definitely go back. Staff was friendly and helpful and they have a basic restaurant for breakfast and snacks.
Rooms are filthy and in a state of disrepair with broken furniture, lamps, wires sticking out, etc. Public bathrooms are disgusting, and the shower/bath facilities are therefore unusable. The first room we received had 1 bed that was rock hard (I could not press into it with 170+lbs of weight) and 1 bed that was incredibly soft (I sat and immediately sank to the springs). Staff is friendly but the combination of abysmal conditions and a pretty high $/night means that you should avoid this hotel.
We came to Guatemala on a budget and planned to see a lot for less. If you looking for high end this isnt the place as the high end hotels are in Zone 4 ranging from $90us-$250 a nite. If you looking for somewhere to get a quiet rest after site seeing for between$18-$50us then this is the place in Zone 1. It has 5 floors and no elevators so if you get a room anywhere from #301 to 510 the stairs are a killer. Small cafe downstairs has excellent local dishes. Yes the place is run down as it has seen its better days but the staff is exceptionally helpful to your needs.
I stayed in this hotel in august 2014. the hotel is situated in a beautiful colonial building. it's in the center of the town. they have wifi (but not in the rooms). cost me us 20 for a big single room. I recommend.