We spent four comfortable nights here. Montezuma is all of two or three blocks long and chock full of restaurant,housing and beach choices. There are hostels for backpackers and high-end choices for people who want saunas. This is a reasonable choice for people who want economy along with comfortable mattresses, a/c, wifi and cable. Be aware that you'll need to buy drinking water everywhere.
The prices quoted by other visitors for their rooms may have been low season rates. We paid more. Ymmv.
Also, this part of the coast is experiencing a red tide. If you're coming soon, check whether it's still here.
We were lucky enough to stumble across a turtle conservation station on the beach on a day they were releasing turtles into the ocean. Totally unexpected thrill.
We also loved the waterfall just a ten minute walk from the center of town. The climb is a little harder than I expected, but there's a lovely pool near the beginning of the climb where you can sit in the water and wait for the more intrepid in your party who want to make the whole climb. Remember to wear good shoes, a bathing suit and a hat. Lovely!

Very clean, great location, Carlos the host is very nice and knowledgable. For 45$ a night we had a huge room, with 2 beds, 2 bathrooms, TV and A/C. Highly recommended

I stayed in Montezuma Pacific for a few nights in November 2011. For approx. 30 US dollars a night had a double room with big private bathroom, aircon, fridge, hot shower, wifi. Room was basic but immaculately clean and comfortable. It was one facing the communal balcony which I mostly had to myself. I spent many a happy hour there watching the wildlife frolicking in the big tree opposite: monkeys, iguanas, squirrels, white-throated magpie jays (made the mistake of feeding them and they got a bit too friendly but got nice photos! :-)). The host, Carlos (I think) was extremely friendly and helpful beyond call of duty. He, for example, made several calls on my behalf trying to find out about bus schedules and road situations and confirming hotel bookings for my forward travel. The location is perfect, just at the end of a little side street off the main street (there is not much more in central Montezuma), so it's quiet but still less than a minute to walk to the restaurants on the main bit and less than 5 min to walk to the beach. Would definitely go again!

Montezuma Pacific is an excellent budget option in this gem of a town. I planned to stay here for a few days but ended up staying for 10 days. The hotel is just one block away from the small strip mall in the downtown and the beach. Although the lobby area and the hallways need to refurbished, the rooms are nice and clean. My room had a refrigerator, A/C, hot water and bright natural fluroscent light – everything in good working order. There is also really good free coffee available all day long.

You also get a chance to see iguanas, squirrels, and other animals from the balcony in the park in front of the hotel. If you get lucky, you may even see a hedgehog.

The owner Carlos is very helpful and friendly. Highly recommended.