My wife and I spent a few nights at Amor de Mar in May and thoroughly enjoyed it. This is a perfect middle-of-the road accommodation in Montezuma- not the luxury and high prices of Ylang-Ylang, but not the gritty bare bones of the many hostels.
The hotel is located on the main road along a rocky stretch of beach front property. The sand in Montezuma is nothing to write home about, so the rockiness is actually a more pleasing view than the debris-covered shore where many of the other hotels sit. This also gives more privacy as few people walk this rocky stretch. It is located literally across the street from the entrance to the Montezuma Falls, which is awesome.
I'm not sure where the "five minute walk to town" idea came from, because it's easily a 10+ minute walk to downtown (El Sano Banano, ATM, shops, etc.). In high season you would have to dodge the crazy tourists on ATVs, and in low season you have to dodge the muddy puddles. Regardless, it's a nice walk and really not that long... it's just definitely not 5 minutes. This distance does provide a much more peaceful atmosphere. Make sure you bring a flashlight when walking back from town in the dark.
The hotel is absolutely beautiful. I don't think you can find a better spot in Montezuma. The decor is earthy without trying too hard and they do a great job of incorporating flowers amidst the trees enveloping the building.
I really can't say enough about the fantastic breakfast and how ridiculously gorgeous the view looking out at the lawn and ocean is. It's pretty much straight from a travel magazine with short green grass, big palm trees, and big iguanas slowly meandering about in front of the rolling waves. We usually sleep in on vacation, but we were always up early here to watch nature come alive while having a great cup of Costa Rican coffee, a big fruit plate, and a veggie omelet. Perfection.
We stayed in room 3, which was okay. It is much smaller than it looks on the website, and there was a bit of a noise issue with the local rooster reminding us of his presence between 3 and 4am every day. Oh well. The bed was comfortable, the safe deposit box worked, the shower was warm, and the A/C was powerful, so all of our needs were met. An exhaust fan would be a nice addition since the warm humidity + disposal of TP in the trash can made the bathroom a very funky place sometimes!
They have a water cooler in the lobby where you can refill your water bottles. It was much appreciated. I believe it was 200 colones per fill (~40 cents), not $2, as I've seen on some reviews. The staff were nice, though not always available. There is a night watchman every night and an intimidating watch dog. Make sure he smells you when you first arrive so that he doesn't try to scare you off later!
We would definitely stay here again. Reasonable rates, unbeatable beauty.