So I stayed here for 2 night back in August 11 so my memory isn't the freshest... A friend and I stayed here in one of the inner rooms on the 1st floor. Very dark and small. We had 2 single beds and a tiny bathroom that was more like a cubicle within the room with the walls not going up all the way upto the ceiling. Can't remember the exact price but somewhere around $30 for the 2 of us which was a cheaper option in Montezuma. This didn't have a hostel feel for it as there wasn't a main meeting room. Yes there was a balcony with a nice view but not very social. If you stay here, I would go for one of the upper rooms. The hotel was a short walk from the main part of montezuma (which isn't much but thats what makes montezuma what it is in my opinion) and is right on the ocean but you can't swim there - too rocky. There is a little beach in town which was decent. There is no surfing here even though I saw a shop or two advertise it, but I think they shuttle you somewhere else.
In my 2 days here I did 2 really fun things. One, we hiked to the local waterfalls which was free and amazing. There are 3 falls and if you hike up the 3rd, you can jump off (about 40 feet of pure exhiliration!) and above it is a lagoon with a rope swing (also fun).
The other thing we did was to rent a quad (lots of places in town with about the same rates, just make sure you check the condition of it pretty good, the one we rented had zero tread left on tires and I didn't notice this till after we signed the paperwork and paid the $, even though we haven't even left yet, he refused to give us our $ back, he was a jerk, we took the quad and it ended up ok but what horrible custormer service, it was at the travel agency place in the corner of town with an internet cafe, across from the main bar, I would avoid this place for sure). We took the quad down the coast south to the wildlife reserve which was fun.
Room Tip: ask for one of the upstairs rooms
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