It's doable in 2 days if you're happy with >30km each day. I did it in 3 days. Plenty of options for accommodation, as you can see on
Gronze. My itinerary was as follows:
Day 1: Mérida - Aljucén (17km) -
Spectacular Roman ruins (Los Millagros aqueduct and a Roman dam). Comfortable path. Great scenery - some walking by a developed lake (Embalse de Proserpina) and some through ranch land with lots of holm oaks. After the Mozarabe, it's quite a change. In Aljucen, you have a choice of two albergues and a hotel rural. The hotel has a spa with treatments that non-guests can use for a fee. I hear it's nice.
If you want to walk further than Aljucén, you can stay in Alcuescar at the "
Casa de Acogida de los Esclavos de María y de los Pobres." which, I believe, is a home for mentally disabled people run by the church. A dutch pilgrim that I met told me that she thought it was nice to be invited to mass and to tour the charity that is run by a religious order. Other people have told me that they didn't like it. I decided to give it a miss.
Day 2: Aljucén - Aldea de Cano (36km)
Good walking on comfortable footpaths. through a natural park with holm and cork oak trees. And more great scenery after Alcuéscar - fincas and another lake (Embalse de Ayuela), which is wilder than the lake of the previous day. Aldea de Cano has a fairly basic but comfortable barn-like albergue with a bar/restaurant nearby
Day 3: Aldea de Cano - Caceres (23km)
The last day is not bad, but the scenery doesn't live up to the first two days. Caceres has a well preserved medieval centre but I wasn't in the mood for it. I didn't like the private albergue in Caceres at all (and I hear that the municipal is no better). Perhaps I should have walked further and stayed in Casar de Caceres. It would have given me a better start for the long stage that follows.