This hotel is absolutely wonderful! This is a great choice for budget travelers who want to "splurge" for luxury. For $50/night, we got a lovely room with a TV, a balcony, bathroom with granite shower, fridge, as well as an included breakfast (three different choices each day). Though it is on the ocean, you need to walk a short distance to the beach (a 3 minute walk). We enjoyed the hotel's free use of kayaks, which you can put in the water on site. There are some great restaurants near the hotel--the coconut shrimp at Velma's, as the first reviewer wrote, is indeed a must.

The owner is very accommodating. There is a computer with internet access in the lobby. We stayed in the newly constructed part of the hotel, which I'd definitely ask for again. We dream about returning to Roatan and to this hotel someday.

We were in Roatan for Christmas and stayed at Casa Calico. The room was spacious and comfortable and has a full kitchen and they cook a good breakfast, which is included in the cost. It's located about a 5 minute walk from all of the dive shops and restaurants in West End. One negative would be that we only had maid service once all week, where last year, they came in every day, also, their ad indicates there are in-room safes, but they have yet to be installed. Other than that, we will definitely go back there.
We ate a few dinners at Velva's, which is only a minute walk from Casa Calico. They make everything fresh and it's very cheap. They have the best coconut shrimp I have ever tasted!
We dove with Coconut Tree Divers and they are the best! They are on time, have a great dive boat and very professional and fun dive masters. They also arranged for us to do a shark dive which was CRAZY!

We've been to Roatan twice in the last 2 years and love it. We decided not to go all inclusive and are so happy that we had the freedom to tour around and do our own thing. It's definitely worth renting a car and touring the island. There is so much to see - it's beautiful. I can't wait 'til next Christmas.