We stayed in the Sol Umag right after it's renovation in 2003 and I can certainly recommend it!
The hotel looks basic from the outside but is luxurious on the inside. The restaurant serves great food (buffet - breakfast & dinner) and if you want you can lunch in the poolside snack bar, which also has some nice dishes. There's a great spa located in the hotel which you can use at extra charge. They offer several relaxation treatments.
Hotel staff was very friendly and provided the guests with an entertainment show every evening.
Tennis-lovers will certainly like Umag since the hotel is within walking distance from the Umag court, home of an ATP tournament, and there are plenty of tennis courts, as well as on the hotel grounds as in the neigbourhood.
The hotel is located right at the seashore so you can choose between the hotel pool or the sea. Lots of rocks in the sea, though, and no sand beach. It is a pity the inside pool is closed during summer because the outside pool area can get pretty crowded.
On one side of the hotel, within walking distance, is a tourist resort with some shops and bars. On the other side is the town Umag. It is a longer walk to get there, but certainly worth walking. Don't miss the ice cream in Umag, since they litterally trow it on your cone across the street, buy ice cream and get an entertainment show for free! The market is also worth your time.
One thing I would also certainly recommend is to rent a car and drive into the mainland and along the coast. Don't spend all your time at the seaside. The hotel staff can help you in selecting great Istrian destinations to visit (including really beautiful artist towns and nice caves).
One more tip: you can take a boat from Umag to Venice, which makes a great day trip. Don't forget your passport, since you will be crossing the Italian border.
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