Due to suggestions on this board, we stayed in Valladolid for 3 nights this last summer on way from Playa del Carmen to Chichen Itza and the Ruta Puuc. Absolutely loved it. We were only going to stay 2 nights but got lazy, enjoyed the strolling and food, and tacked on another night.

I can't imagine this town being turned into a yuppie touristy place. I agree it would be a travesty.

We were not crazy about our hotel (Colonial del la Aurora). Would like to try a different place in same price range (around $45 to 50 USD, or less if there is a nice clean place in that range). Any suggestions?

We were in Valladiod a few years ago, great little city. We stayed at the Mesón del Marqués - very pleasant colonial style hotel right on the plaza. The rooms themselves are modest, but the hotel grounds and restaurant are unforgettable. There's even a small pool in the courtyard, and right next door is an indoor food court with dozens of mom and pop food vendors.

I also stayed at Meson de Marques, and agree the restaurant there is very good.

Another vote for the Marques, but it is slightly more expensive than your range. I'd splurge!

OK, that is it, Marques it is. I did eat a meal in the courtyard and it was relaxed and nice. It is a small town (one of the appeals) and I saw the same group of people I had chatted with at Ek Balam, they were also eating at the Marques when I was and they sent me over a margarita. I also found a little jewelry shop where the young woman made me a necklace and bracelet to go with some earrings she had displayed. And live acoustic guitar player at the place on the corner of the square. And the nice store, Yalat, on the plaza that sells handicrafts from all over MX. And the Candelaria area. What a lovely little town.

We really enjoyed Hotel Zací, just around the corner from the bus station and the colectivo stop for Chichén Itzá and a few blocks from the plaza. I think it would be below your budget. The top row of photos in this set show it:
http://www.flickr.com/photos/staceyholeman/sets/72157624437762275/

Our favorite place to eat was Cafe Itali@, pictured below.
http://www.flickr.com/photos/staceyholeman/4820301460/in/set-72157624437762275/
http://www.flickr.com/photos/staceyholeman/4820298996/in/set-72157624437762275/

We loved that town, too - sorry to hear it might be changing as we liked it the way it was. Happy trails!

I'm so glad I saw Valladolid a few years ago! Thanks for passing on the news, Fra_Diavolo.