Merida has quite a few comfortable hotels for under $60-$85 USD per night.  Those listed below are central and generally are a
10-minute walk to ESAY (workshop location), MELL (location of evening readings) and Instituto Benjamin Franklin (Spanish lessons).

Hotel Caribe will hold a number of rooms for our guests. Hotel Caribe is a former 17th century monastery. It is located on Hidalgo Park in the center of town (an excellent location) and one block from the Main Plaza.  Hotel Caribe is clean, beds are comfortable, they have a restaurant in the colonial courtyard, an outdoor cafe on the park, a rooftop pool with a view of the Cathedral and a couple of computers for guest usage.  (A 3-story colonial - rooms on the 2nd & 3rd level are best - no elevator, see photos below).
Rates from approx. $45-66.  Ask for the "U.S. Poets in Mexico & Amigo Yucatan Agency" discount rate.  USA Reservations telephone: 1-888-822-6431 or email: reservaciones@hotelcaribe.com.mx