Good value, but stay away from the overpriced food and booze
Got a great deal through a tour operator (Island Dreams). Try for a free upgrade to a garden casita. They don't have an ocean view, but they are very spacious. Also, the AC was quite good in the casita. Free continental breakfast delivered to the room if you stay in a casita. The location is good - halfway between town and the best diving (Palancar anything). Quick cheap cab rides to town, and not too long a boat rides to the southern tip of the island. You just want to dive Palancar on the deep dives - gardens, caves, etc. - way better than any of the other wall dives. The dive shop is fine and the dive masters are all real friendly. Be sure to bring some cash to tip them - $10 a diver per trip is good. Not all went flawlessly - the boat lost us after one dive and didn't find us for twenty minutes, and be sure your air's on before you jump in. This is Mexico, so things are a bit laid back and half assed from time to time. Relax and be prepared for a laid back attitude. The service at the hotel itself is spotty. Waitstaff in the beach side lunch restaurant is slow as molasses. If you get all inclusive, expect them to take forever and a minute to bring you a drink. BIGGEST TIP FOR BOOZERS: Take a cab to the Mexican grocery store called Charraudi. Beer and tequila there are a third of the price charged at island convenience stores. Good tequila is super cheap, and beer's maybe 20-30 pesos a six pack ($2-$3). Don't miss the sunset on the beach. Beer's are I think 30 or 40 pesos a piece at the hotel - INSANE! The restaurant upstairs isn't bad, but not great. Bring sunscreen - super rip off in the gift shop. The concierge has good suggestions for restaurants in town. Rent a car (not a scooter, unless you want to die) and see the other side of the island. The hotel is more expensive to rent from, but more convenient. This is not a five star hotel, but a very good value, safe, clean, comfortable, great for younger people on a budget.