My girlfriend and I stayed here for a week during our vacation to Montezuma. We rented one of the houses that the hotel has which have a lot more space than the regular hotel rooms. While the hotel rooms have A/C the house did not. For most people you don't really need it though. The house was a bit hot during the afternoons but during those times we were either hanging out on the beach, the pool or taking a nap on our covered patio that overlooked the ocean. The house has everything you need, stove, coffee maker, utensils, and the loft area where our bedroom was looked out onto the ocean.
In terms of location the hotel is a 5 minute walk to the beach and sits on a small hill overlooking the town. It was nice to be able to walk to the market, restaurants, and shops whenever we needed something but at night the noise from the bars and clubs was annoying. It wasn't overwhelming to the point where we couldn't sleep, but the hotel is right on the main drag so it was an issue at times. The only other issue we had with this place was the bugs. The house is made of wood and very open so mosquitoes and other bugs can get in. This is only an issue at night so be sure to use the provided mosquito netting when you sleep otherwise you will get covered in bug bites.
All in all we had a great stay there. A lot of the other places in town are a bit dumpish looking so this is definitely one of the best places to stay if you are going to Montezuma. I would also recommend Ylang ylang. We didnt stay there but we had dinner there and it was very nice. Its about a 15-20 min walk from town on the beach so its not as noisy but I could see walking to and from town getting a little old if you had to do it a lot.