We stayed here as a group of friends, having stayed last year at Nixe Palace (which is next door)
The area around the hotel is a bit grotty, but we like the location due to the beach, and close to Palma. (€10 in a taxi)
The Luabay is nice, and for what you pay, I think good value.
The rooms are ok. Large, but very open plan bathrooms! Our room the decor was really badly done, cracks in the walls, and skirting coming off. This really let the place down and would be SO easy to put right.
Breakfast was good , I have stayed in far more expensive places with worse breakfast.
The pool is busy and small, we used the beach most days. In all I thought for the price good, with a few small things that could improve.