I've stayed at Azul Marino twice over the past couple of years.
Its a beautiful place. The owners and staff are very helpful. There's complete flexibility as to when you have breakfast (which is nice if you've had a late one the night before), lots of things like that make you feel very at home and relaxed.
The location is also very good, Jose Igancio beach is less than 5 minutes away by car and the hotel is on a road between two of the best restaurants in the area (Marismo and Namm), each is a few hundred yards away from the hotel. In fact, all the best restaurants in Punta del Este are in Jose Ignacio so you're never far from some great food (try La Huella and Garzon aswell). You can also drive down to La Barra in 20-30 minutes for more beaches and the best bars/clubs in Punta del Este.
I would most definitely recomment this place (I've been twice) and if I visit Uruguay again I'd go back without hesitation.
Finally, I noticed a couple of people saying you need a car and there aren't many ATMs around. This is true but its the same for anywhere you'd stay in Jose Ignacio. I'd also say that you'd need a car no matter where you are in Punta del Este. Punta del Este, La Barra and Jose Ignacio are stretched out over about 25km of coast.
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