My husband and I have stayed here three times in the last three years (in winter) for family visits and will, with trepidation, go back in Feb. 2013. The setting keeps us coming: secluded, treed location right on the bay, nice waterfront path, herons in the lagoon and well-designed minimalist landscaping. It's the exact opposite of the Panama City Beach monoliths and cheap motels, and unique among the local lodging choices.
The public spaces are good enough--spacious lobby area, OK restaurant and comfy bar, pretty good breakfast even for the "included" buffet.
The rooms, though, are aging, small for a resort (one chair??) and sometimes just not working. We've never had a bathtub that drained well and twice the AC has been rattling and noisy. Beds and bedding were good to passable. Cleaning can be incomplete, in part because the bathrooms are so worn. The brass elevator trim is a messy fingerprint gallery. The many other complaints on this site ring true.
Also, the amenities shut down in winter, including the charming Lymes lunch grill on the long dock and the unheated outdoor pools/bar. The water shuttle to larger beaches closes for the season. There are no other good restaurants close by.
Yet, some of the rooms have serene, gorgeous views and staff tries to be responsive. The management promises that at least the bayfront rooms are being renovated. If that's done well, and the housekeeping improves, this place would get the 5 star ratings that its location deserves.