Initially we wanted to stay at one of those cabanas (El Panchan, to be exact) which were cheaper. We also thought it would add on to the whole experience of staying in the "jungle". Our taxi driver took us there, and we found out that there were no vacancies. This is no surprise, as they are popular and the website does not allow any reservations in advanced.
Anyway, we were really glad we didn't stay there. Driving around the huts and accommodation in El Panchan really disgusted us. The surrounding "jungly" areas were dirty - we saw empty bottles and rubbish strewn everywhere. It didn't look hygenic at all.
We've stayed in backpacking hostels and camped before (so we're not snobs) but we know where to draw the line. El Panchan just wasn't the exotic place you'd imagine from reading the recommendations.
Back to this review - we drove around and finally came to VIlla Mercedes. It was beautiful, and of course, you get what you pay for. It's expensive, but hey, we figured we wanted a good rest before and after such a long day at the Palenque ruins.
The compound is resort-like, with 2-3 swimming pools. Our room was at the top, and it was spacious, clean, and very "mexican". Every room also has a hammock outside, so that's a plus! We had a great time there.
We didn't eat at the restaurant though. We were there for new year's eve, but opted out of the dinner. It looked pretty tacky and they were charging top dollar for the night (i guess it's like this everywhere on NY eve). So we went to Palenque town instead, and had a great time there, just mingling with the crowds and locals there.
Location-wise, it's great. It's situated on the way to the ruins, and is a short taxi ride away from town.