Hotel San Telmo is a quite little hotel (only 8 rooms) in the heart of the old quarter of santa Cruz de la Palma, a five minutes walk away from the lively Plaza de Espana, the main place of Santa Cruz.
The owner is Marita, a very kind lady of German origin, who talks fluent English, French, German and Spanish. She makes you a very strong coffee in the morning, suggests great restaurants (La Placeta) and helps you fin a rental car (although there is an excellent public bus service).
You can't have breakfast in teh hotel, but you can bring your own breakfast (the market is only ten minutes away with fresh goat cheese and the best avocados you have ever tasted) and eat it there. The hotel is painted in bright colours, the rooms are spotless and spatious and so is the bathroom. It is also very quite and you have a charming little patio with a fountain to look at.

If your looking for the charm and the personal contact of a B & B, than this is the place were you have to stay in Santa Cruz de la Palma.
Mind you, there are some bad reviews of a hotel with the same name in Tenerife and/or Spain. This review is about San Telmo Hotel in Santa Cruz de la Palma.