I spent three nights in this 'hotel'. I encourage you to look elsewhere in Montenegro. I can't think of any reason to stay here, let alone visit Plav.
Service: I've traveled enough to know when, as an American, I'm not wanted. I was polite and attempted to communicate at all times... but was met with a cold demeanor and often felt as though I was being nickel and dimed. The night waiter, a lanky mustached man, has a personality better suited to solitary farm work or maybe as a blacksmith. He was incredibly unpleasant.
Food: The food is the only thing that gets this place a 2nd star. It was fresh and really pretty good. You could tell it was local. I had a fresh egg omelette every morning. The problem with the food is that there is very little on the menu that is actually available. It seemed that every item got a frown and a head shake from the mustached field-hand waiter. The breakfast was included, but any drinks with breakfast were not. Coffee was extra.
Rooms: The rooms are hostel-quality. Old matresses, sand paper towels, ratty blankets. Not much more to say. I wouldn't pay much more than 10 euros a night to sleep in one of these rooms. It cost me over 35. Oh, there are dogs all over the place that bark all night. The waiter and locals hang out in the bar/den area all night and you can hear everything in your room. Terrible sleep.
Bottom line: Don't take the risk like I did. I read the reviews and stayed here anyway. Move on. Kolasin was much nicer of a town. Plav had nothing to offer. The lake was definitely beautiful... but thats about it! By the way, the long dock in all of the photos is sinking... you can't go out on it.