Hotel Lys is right on the beach, which should lead to sleeping with the sound of the waves crashing against the shore and the ocean breezes blowing into your room. Wrong! While management is very laid back and the price is good ($20 for room with a double bed, bath down the hall) the wonderful potential atmosphere was completely ruined. On our first night there, our windowless room was unbearable, filthy, stained sheets, bugs everywhere. Night 2 we were unable to sleep because an older guest/resident was playing the cowbell erratically to LOUD salsa music until I begged him to stop around 1am (he was the only one on the patio- no party going on, just this solo party!). The "music" picked up again a bit before 6am. That day, because there was no place in the room to hang your clothing or wet towels, we used the line outside- only to have our towels stolen. No matter tho, the water went out in the place for the rest of the night.
Pros are of course, the amazing beach location. You can't beat literally living on the beach, and luckily, we did not need to be around during the day. But at night, when you just want to sit back and relax, there's really no place to do this (you dont want to sit on the beach because of all the crabs at night) and the really loud music makes it impossible to have a conversation or wind down in the common area, and the rooms are so shoddy thats no place to hang out. After 2 bad nights, the lack of water, the stolen towels, the filthy room, and the noise, we went to another place in town for only a bit more a night and it was relaxing, had a kitchen where we could cook our own meals and store our water bottles, and was quiet and peaceful- a perfect place to return after a day of hiking or swimming.
I've stayed in hostels all over the world, and this was the least considerate, and the dirtiest.

I stayed one night at the Hotel Lys, it is located on the beach of Montezuma and 2 minutes away from the main street, but I was very disappointed with the room. For sure it's cheap but my room was tiny and dirty, bedsheets full of stains, cobwebs on the walls, the bathroom was old and not cleaned properly...It is a real shame as the staff is really friendly and laid back, but for the same price you get a get big, airy, clean room n town.

Intimate and personable, the Hotel Lys is a small hostel-like property right on the beach in Montezuma. There is a "patio" out front on the sand under a large umbrella-type awning, which is a perfect place for meals, relaxing or just people watching. The staff is friendly and helpful, fluent in Spanish, Italian and English. Every night they serve a family-style dinner, which was delicious and entertaining -- my first night 12 different countries were represented at the table -- fascinating! The accommodations are basic, but you can't beat the price or the view!