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I'm about to travel from Mexico City to the beaches on the Oaxaca coast.

Having done this trip many times but not for at least 8 years I have some idea but know few details.

There is a winding route over the mountains between Oaxaca City and the coast (Pochutla) which the first class buses don't use but which is very beautiful.

I recall cold highlands towns along the route with many wood buildings. In the past I was always intrigued with this area but never spent a night there.

I do not know the name or names of any town in this section. These days there are a lot more hostels in Mexico than when I was last here and even there's not a hostel there could be something similar.

Does anyone know such a place?

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  • I did start researching way before. But Murphy's law or some other law surely exists to teach us that you find the answer yourself just after giving up and asking for help. Besides, this is exactly how SE is supposed to work. Think of a question and answer it yourself so it can be "out there" to help others.
    – hippietrail
    Jan 1, 2017 at 22:10

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Yes!

I got lucky with one of many Google and Google Maps searches and found just what I was looking for.

The "town in the clouds" is called "San Jose del Pacíficio" and is 138km from Oaxaca City and 103km from Pochutla. Its elevation is around 8,000 feet or 2,500 metres.

It seems there are now several hostels or cheap accommodation with dorms but the one everybody mentions by name is "Hostal de Doña Catalina".

Wikivoyage even has a page on the place!

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