I think that anyone who complains about the Gem is really snotty. Are you expecting super exclusive all inclusive standards at the price they are offering? Or are you wanting the opportunity to cater for yourself, in a large apartment right on a lovely bay, and get to to know the area through hiring a car or walking to a few places? My wife stayed for 5 nights as part of our honeymoon in the Caribbean and found it perfectly acceptable overall. Pluses include the birdlife in the gardens around, the lovely bay, easy access to local malls and St Georges, the size of the apartments themselves, and a nearby headland from which to get a fantastic view across the bay to St. Georges (best to see in the evening as the cruise ships put out and the bats play around). Minuses include the slightly dodgy toilet and the dirty kitchen equipment, the sea container in the carpark and the very noisy nightclub chucking out at 4am.
Local costs: taxi to airport or St. Georges = US$16; local minibus for same = US$1. Car hire = US$70 per day incl CID. Groceries on par with europe except for local produce which is cheap.
Grenada itself seems to have suffered after the hurricane of 2004 though they were desperately trying to tart things up for the Cricket World Cup.

Apartments very spacious, well equipped although some of the equipment could do with maintenance/repair. Staff very helpful and friendly, normally tried to rectify any complaints promptly.
Kitchen units cheap and poorly maintained, but other furniture of an acceptable standard with beds ( stayed in No. 4 and 16 ) excellent. Maid service good.
Sur La Mer Restaurant's atmosphere is lacking, but food is good and of average cost. Room service is good, food arrives covered in clingfilm, best reheated in micro wave.
Access to beautiful Morne Rouge Beach wonderful with complimentary beach chairs.
What about the future ?
The Gem is building a block of 30 rooms next door, with swimming pool and gardens. The total capacity of the two units will be some 100 guests which will make the place more of a Hotel Complex and more lively but all the building around Morne Rouge Bay will reduce it's attractiveness for the future.

After reading many reviews on places to stay in Grenada we chose the Gem knowing there would be some issues. When any review says "I cried when I got there" that is a heads up. The location is lovely, nice beach, calm water. Whenever the cruise ships come in they have a day trip here but it never gets overbearing. It is not walking distance to anything unless you want a workout climbing hills...which isn't bad, however in the heat..ridiculous. If you want to get around you need a car or else you will spend alot in cabs. Now the Hotel...bath towels so thin you can see thru them. Everything in the unit is ancient. You get a bar of soap...that's it, so bring your essentials, which stinks because of the limit when traveling. Beds small and uncomfortable. Shower good. Toilet constantly gets stuck. Nice patio, we had oceanfront corner unit,2nd floor which overlookes a dumpster and roof of nearby Disco...can't really see the beach.Fourth floor would be better. Restaurant...limited. After first day did not eat there at all. Just really poor in need of renovation. It is family owned and obviously they do not put any money into the place. Staff very nice and helpful. Kept the place clean. All in all if you don't want to spend much I guess it is o.k. I do believe there are better choices, however in that price range? What we paid was rediculous $60.00 a night. We spent more eating out every night. We went to the best restaurants and visited the top of the line hotels. Being from New York I may go back one day, not soon...there are too many nice islands closer. As far as "The Gem " we got what we paid for.

The Gem is not the most elegant hotel on the planet but it is on what must be one of the best beaches, and the management and staff also qualify as among the best. The rooms are not super fashionable, but they have everything you need and you are practically on the beach. Even in one of the front apartments nearest the night club, we didn't hear a thing, even though we knew the place was packed. We walked over to Grand Anse beach and the spiceland shopping mall as the weather was not too hot, but in hot weather it would be a bit too far. Reception are happy to call a bus for you, with just a small amount of notice. The restaurant is good, if perhaps a little expensive for european pockets (show me somewhere in the caribbean that isn't) but there is always the choice of self catering as the apartments have full kitchens. We looked around at many of the other reasonably priced hotels and decided that Gem had the best location.