I booked a two queen bed-room online and when we check in the manager assigned us to a super small room, with a mini double bed and a single bed.
Then we found out the shower water was nearly dripping out and completely cold, the manager came and spent 15 mins trying to persuade us all we need to do is to wait. When he was finally proved wrong, he changed us to another room, much larger with two queen beds (how lucky we were!). Not surprisingly the water is still dripping cold, and the plumber that he promised to come never showed up.
This is definitely the WORST hotel experience I had during my entire stay in Costa Rica.

This was a perfect place to stay in Montezuma! Stayed at El Sano Banano (Ylang Ylang's sister hotel in town). It was a quieter place than most hotels right in town--next to a grocery instead of a bar (but beach and nightlife are still very short walk from hotel). Has air conditioning, hot water, and safe in the room--all the big necessities. One big advantage of being right in town: you don't have a long uphill hike to your hotel at the end of the day. Great food in the restaurant too. Access to the fabulous pool at Ylang Ylang (without the price) was a definite plus--great after a beach walk but without the premium prices--towels provided too. (There's not really a shuttle to Ylang Ylang--only runs at 8:30 am, but it's not a problem to take a pretty walk on the beach to get there).

I stayed at El Sano Banano for 7 nights and it was everything I needed. The place is clean, the staff is very nice and helpful. It is right in town. I was able to use the amenities at their resort, ylang ylang which was beautiful, and also took their yoga classes overlooking the beach. I would definitely stay here again:)

I'm not sure how this hotel managed to obtain such a high ranking. Although the staff is amazing and the food is good, the hotel itself is horrible.

1. In some rooms, there is not a single window. In other rooms, there is a window but you can't get the sun blocked in case you decide to have a nap during the day. Also, if there is a party outside, you will have a hard time falling asleep.

2. No hot water, or should I say, no water at all? This is the most frustrating part. After a day at the beach one would hope that for over a $120/night you can get a basic shower. Well, no. There is a serious problem with water pressure and if you are lucky and there is some pressure, it will be cold anyway. At some times, there was no water at all!!!

3. No room for clothes/stuff.

On the positive side, the staff is very nice and the hotel is secured at night. The food is pretty good too. There is a/c & internet. Also, when you reserve a room at Sano banano you may access the pool and the restaurant at a fancier hotel - ylang ylang. This is a good option if you're willing to walk 10-15 minutes along the beach.
Let me finish with a comment on the location that many mention in their review. Montezuma is a tiny place. Everything is in "downtown" except for the above mentioned ylang ylang resort. There is absolutely nothing special in the Sano banano's location.