You have to ask yourself what you want in a hotel. The Grand Royal Lagoon is not in the hotel zone (which if you're renting a car you might appreciate not having to drive through the hotel zone every night since it can be hell!). It's on the lagoon so there's no swimming or beach access but has a nice view. Now if you want a hotel to sleep in this is a good choice. We spent five nights here- it was clean, had air conditioning, and the showers were good and had hot water (which is not always the case in Mexico). The hotel includes breakfast starting at 7:30am (also nice since nothing is open that early in the morning) which is coffee, juice and usually eggs and toast. The snack bar stayed open till 11pm for snacks (burgers, beer, etc.). They had enough parking for about 12 cars which was sufficient for the low season. I would definitely stay here again though the beds and the pillows are kind of hard but we were so tired it didn't matter.

We were pleased with the helpful staff. The room was adequate to sleep & shower. There is easy access to local transportation, eateries and entertainment. Away from the hustle & bustle of Cancun hotel row. Staff was more than willing to please us.

This quiet little hotel has only about 30 rooms and is not a fancy hotel by any means but it is well maintained and clean although there may be a few lights and so forth that did not work over all it is very clean , has a nice view of the lagoon has a very good free breakfast every morning and is located within walking distance of major hotel zone eating and show places. The best deal in the hotel zone.

We had two nights here in Jan 2009 before travelling on to Belize. We paid US$50 per night which included breakfast, served in a cute open sided cabana at the waters edge. If you are looking for the all inclusive resort experience then this is not for you, but if you just want somewhere clean to crash for a few nights then I would recommend it.
The main hotel zone is just along the Boulevard and the Downtown area a couple of miles the other way.
We ate at a nice restaurant which is in a hotel a bit further down the side street that this hotel is on. Turn left out of the hotel and La Palapa Belga is about 100 m. along though the lobby of the Calle Quetzal Hotel. We had a reasonably priced, lovely meal at the waters edge overlooking the lagoon.