We had 2 stops in Playa del Carmen on our trip to Mexico and on the second one we checked into this hotel due to its proximity to 5th Ave and the beach. The location was definitely great with the beach only a few minutes walk and bars/restaurants on its door step. There is a fun bar next door which had live music both nights we stayed. This is great if you like the nightlife but it means that the hotel is not quiet.
Beach towels and a safe key can be provided but you need to provide a cash deposit.
We selected an air conditioned room which was definitely a wise move. But, the room was pretty dark and seemed to have a ridiculous number of mosquitoes. We didn't have too many issues because we used a lot of repellant and my partner would do a big mosquito kill each evening before we went out for dinner. I guess they were let in each day by the cleaner when the doors/windows were open.

we stayed at 3 places in Playa 2 years ago, and loved Posada Freud (giving it a good review on this site) and so headed back there this year. Last time we felt that we had a great room at a good price, with the only pitfall being the late (3am), loud music.
Sadly,we felt it had let itself go a bit this visit. We walked right on past as the whole front was in darkness, not even the hotel sign was lit up and the reception guy was sat in the dark. We had our old room- minus the fridge (which was replaced) and hot water (which we never got). The crockery was much depleted and the cutlery was down to 2 forks and a spoon. The loud music also went on later than our first visit, heard even through ear-plugs.
We had planned 4 more days there at the end of our holiday, but found a bigger, quieter, cheaper room with full self-catering utensils. Sorry Posada, our love of you has waned.

Stayed at Freud's for a couple of nights Sept 2011. The rooms are spacious, airy, and super clean, with an excellent location and very good price.

In addition we got free beach loungers for the 2 days at nearby Sensi, free use of beach towels and free Wifi. The front desk staff is very friendly and helpful. All in all an excellent stay.

I went there with my girlfriend four the last 2 days of our vacations in the Playa del Carmen area. I was cheap but still very clean and quiet. The hotel itself is accessible by an "alley" between a converse shop and a bar on he 5th avenue so the real facade is hidden from most tourists eyes.

The only bad comment I can give (I had to find one) is that we had problems using the (free) wifi.

I recommend this hotel for any couple or family who want to stay in playa, but still be able to escape its loud and crowded streets for a few hours of good sleep.