We stayed at Hostal Restaurante El Mirador for 3 nights. Its location is strategic, as it stands in a sort of crossroads between various Ecuatorian birding attractions - Mindo, Angel Paz, Mashpi --, thus being very convenient for a change of direction and as a base for day trips. El Mirador is right off the main road, and one would expect it to be noisy at night, but traffic is almost nonexistent after 9pm. The lodgings are simple but clean. Most of them are laid out side by side on the driveway leading to the restaurant. I had a 2-bedroom-1-bathroom, and chose the back bedroom fearing the noise. It was small but comfortable (and since I wasn't sharing, I used the front bedroom for my luggage). The only real issue was accessing the one electrical plug in my room (to download photos, recharge batteries, etc.), which was behind the bed and close to the floor, requiring me to stretch my arm behind the very tight space between the tall headrest and the wall.
The food at the restaurant was honest, no frills, and generous. Wi-fi only works in the common areas.
What makes this place so special, however, is the huge terrace behind the restaurant. We arrived when it was already dark, but very early the next morning I was there and got the sunrise of the trip. This terrace overlooks the Rio Blanco valley, a very lovely landscape of mountains and steep forests, and is chock full of birds. The owner, Patricio, a very affable and welcoming chap, lays out sugar water bottles for the hummingbirds and fruit for the other birds; movement picks up pretty much while the sun is going up. It is a wonderful sight to see and photograph, and he was kind enough to put out fresh coffee for us while we were admiring the bird life. Breakfast (facing the banana feeder) was interrupted several times when interesting birds popped up for a snack. We had trouble getting out of there on the first morning, since there was so much to see! El Mirador del Blanco was a rewarding stay for our 3 nights.
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