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Isla's (sorry I'm not sure of the spelling) is a great seafood restaurant on the Malecon. They serve a shirmp cocktail with the biggest prawns I have ever seen!
Del Borachos (again sorry about the spelling) is a great hamburger joint just outside of town, it is a must everytime we go to Loreto.
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I was just in Loreto this past weekend and it's fine. I worked a large public event well attended by the locals.
I had a nice dinner in Terraza a few years back and they're still around.
McLulu's for baja fish tacos.
Not a lot of options in Loreto but if you look around you'll find some nice seafood spots.Love Loreto, stayed in the new La Mision hotel on the malecon, very nice.
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Mariana is right about the damage done to Mulegé and Loreto by the hurricane. But when things get back to normal, here are a few recommendations:
Mulegé: The restaurant in Hotel Serenidad (south of town) and restaurant El Candil (downtown).
Loreto: Any of the palapa restaurants south of the zocalo that serve deep-fried crabs and Terraza Restaurant (second floor) just off the zocalo, and the fancy European/Italian restaurant in the hotel just across the street from the zocalo (La Posada de los Flores ?) whose name, I think, is Vecchia Roma. The chef/owner of VR takes a month or so off every year to return to Italy to eat, drink, learn, and "recharge." He closes the restaurant during that time and, I fear, that might be the month of January. Maybe someone else can confirm or correct this information.
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