We stayed here for two nights during the rainy season and were the only guests! There wasn't any breakfast, but our room was 50% off so we didn't mind. The hotel is very nice and our room was clean - they have cotton sheets and big towels. Our only complaint was that it was a bit far from the town, which in the rainy season can mean a muddy walk home from dinner.

$55.00 per night + breakfast. Good little place, good breakfast to start the day. Located on edge of town, near to waterfalls, dusty road walk to little town centre!
Our room was on side of building, set below upper rooms. Air con was electric fans on walls, but adequately kept room cool.
Heard constant rushing water, from lower stream and falls.
But overall good value for money and we were made extremely welcome by the owners.

I stayed at this hotel as part of the G Adventure tour group so I had a chance to see many of the rooms here.

Right next to the river, soothing sounds at night. Walk up to the Montezuma waterfall.

The breakfast restaurant is quite good.

Love the hammocks on the second floor! Very relaxing.

Generally clean, with towels and white sheets provided & changed everyday. Night security. Owned by a local family who lives at the back of the hotel.

Showers are unpredicable...sometimes a drizzle then suddenly more water power! Cold shower only. Hot showers are something of a luxury here in Montezuma. Good luck finding it in any of the budget places in town. Even when they say it's 'hot' it's lukewarm at best...

Most of the rooms don't have air conditioning but have fans nailed vertically to the wall. From what I have seen, most of the rooms are not spacious and can get stuffy at night.
However...
I really lucked out and got room 20. It's bigger than rest of the rooms and the ensuite bathroom is also huge, with a shelf to put your stuff. It does not have a/c but because it's by the river with big screened windows, it's very cool at night, I actually had to ask for a blanket!

We stayed two nights in la cascada in january '12 because almost all other hotels and hostels were full!! La cascada was almost empty, but rooms are clean and nice, breakfast is ok but 50$ a night is too expensive for montezuma! Front desk wasnt very friendly. The waterfalls are nice and we had monkeys in front of the hotel! Best beach in montezuma is playa las manchas