Location of Colitas Bar/Hotel
I can fill you in, having been there a few times. It's south of Iglesia de la Merced, which adjoins parque de la Merced. The street that runs south behind the church will take you downhill and it's about 3 or 4 blocks on the right. The hotel is actually called the 3Bs, and the bar Colitas. It was being run by Juan Carlos who used to manage the Molino Rojo. I haven't been by lately so I can't say what's new there. I did notice the sign was lit as I passed by in a taxi a week or 2 ago so I assume it's still open. Not a bad option for a love motel or inexpensive rooms. Small but clean.