We stayed six nights at Villa Formosa as a group of four including my elderly parents. Overall, we were very happy with the accommodation. The best part was the staff who were unfailingly attentive, friendly and helpful. They really made the place feel like a friend's country house than a hotel. So thank you for that.
Breakfast included in the stay was just OK, but it was hearty and freshly made, and coffee was very good. Italian food for lunch and dinner was delicious. By local standards it was not cheap, but we were happy to pay given the quality (and it is a great deal compared to what Italian food costs where we live).
The pool is very well maintained and of a decent size for swimming. The hotel ground is big enough to provide a feeling of seclusion.
The rooms, though, were not especially great. We stayed in two deluxe bungalows. They were very clean and spacious but dark. Expect mosquitos, which are difficult to kill because of the high ceiling and all the nooks and crannies. A mosquito net of some kind would be useful should the management consider providing them. The low-flow toilet did not always flush correctly even when there was only water in the bowl and nothing else. In one of the two bungalows water was at most lukewarm in the shower. It was not a big problem as the weather was warm, but some may care about this kind of thing.
As many other people noted, the Dumaluan beach is about 5 to 10 minutes away on foot, depending on the speed of walking. The entry costs 25 pesos per person now. The beach is beautiful, much better than the more famous Alona beach, and you can see locals having a great time, especially on the weekend. Contrary to what some people have written, the two big resorts do not allow paying to use the facilities on a daily basis, at least not these days. On the other hand, the hotel restaurants are happy to have you come for meals.
If you like easy access to lots of shops and restaurants, Villa Formosa is probably not ideal, though there are some local options along the main road 10 minutes away on foot (in the opposite direction from the beach). But if you don't like being in the middle of a tourist hub and would prefer a nice beach nearby over convenience, Villa Formosa is a great choice.