Hostal San Francisco is located in Tulcán, capital of Carchi province, at the northern tip of Ecuador, near the border with Colombia. The city is known for the Tulcán Cemetery, whose cypress hedges sculpted into geometric and figurative shapes are considered one of South America's foremost works of topiary art.

Sitting above 2,900 metres in elevation, Tulcán has a cool mountain climate and serves as a major crossing point between Ecuador and Colombia.