The hotel itself is charming. The staff was excellent and the onsite restaurant had delicious food. The only problems I encountered were ones that were out of the hotel's control.
Parking in the area is difficult. If you don't need to bring a car, don't. Everything in San Pancho is within walking distance, there are taxi's and uber's available, so ditch the car as parking is difficult to find.
Another issue was the demonic roosters. For some reason the roosters in the neighborhood have decided that 3:30 a.m. is the appropriate time to crow. We were at the hotel for almost a week, and every morning like clockwork the roosters started at 3:30 and kept crowing for hours. Again, the hotel has no control over the roosters, they actually supply ear plugs to try and help with the various noises, but it was still an issue for me.
Bottom line is if you want a boutique hotel experience in beautiful San Pancho I highly recommend Ciel Rojo. Just be prepared for some of the quirks of a small Mexican town.