I am a frequent traveler to Bermuda an have stayed at Grape Bay four time previously. I've noticed a decline in service, cleaniness and food options each year but still found the hotel to be one of the best values on the island. However, my last visit in August will be my last visit to this hotel until they are under new management. Here my quick list of unnacceptable experiences:
1. The hotel restaurant was closed eventhough the on-line literature showcased it. Having a restaurant on-site is more than a "nice to have" option since the hotel is not within walking distant for meals.

2. The breakfast was once a highlight of the hotel with scones, cheeses, various juices, etc. In August, our options were a loaf of bread, peanut butter and cold cereal. The worst part was that for two days, the breakfast area / living room was OVERRUN with ANTS and the staff took no actions to spray the area and/or provide the guest with other food choices.

3. The beach associated with the hotel had been washed away. We ended up "trespassing" on the private beach next to the Grape Bay beach.

4. 50-75% of the time that we returned from an evening out or needed a taxi, the front desk staff was missing or "busy" doing something that prevented them from providing immediate assistance. Because of the isolation of this hotel, I would prefer 24 hour security.

5. On vacations, I like to sleep late (11-12 noon). The cleaning staff was inflexible regarding a late cleanup and made it clear that I was inconveniencing them if my vacation schedule did not match their work schedule.

I have travelled extensively and have stayed in both budget and 5* resorts. I have never written a review before, but felt compelled to warn people about this "hotel". It was advertised as a boutique hotel... it was run down, unoccupied, no restaurant (thank goodness!). no front desk (there was a nice lady in a back room), no staff after 5pm... oh yes, and let's not forget the rats! The hotel was pretty much unoccupied by tourists (maybe 3 rooms rented out). There was a continential breakfast included in the $200/night rate... a loaf of bread (still in the bag) and a large tub of peanut butter with a generous amount of plastic plates and plastic utensiles. I would describe this location as a "run down youth hostle"... avoid, avoid, avoid.

We checked out the next morning - which was no surprise to the lady in the back room. Luckily, we were not charged for the remainder of our trip. We were recommended to another hotel close by (Coco Reef Resort... very nice), which saved our trip. The one thing you will find about Bermuda is that EVERYONE is wonderfully happy, helpful and simply lovely... the people of Bermuda are like no others!

On a very expensive island this hotel is a very cheap alternative. Just be prepared that this is what it is. It is not a new hotel. It is run down and many things need repaired or don't even work. I.E. there is no functioning ice machine. The office had ice available from a bag but even that ran out for a day. The breakfast was limited and spare, and one morning not available "because of ants". There is no restaurant on site (Sappori has been long closed, even though it is still advertised on the hotel and Bermuda Tourism websites). The closest places to eat are 10-15 minute walk as well as a grocery store for supplies. The walk is hot, humid, and has a hill involved The pool was open, but not cleaned daily.
Now the plusses. It was inexpensive, the staff was exceptionally friendly in spite of the lack of conveniences. The room was clean and good sized. The room had a refrigerator and microwave, which was great since there is no restaurant (go to the grocey store for supplies). The pool and hotel have a great view. You are alone in a quiet place overlooking the ocean.
If you are low maintenance, like peace and quiet, budget minded, and don't mind a walk to get to a bus, store, or restaurant. This place can be a good base for exploring Bermuda.
You can rent a scooter, take a cab, or take the bus/ferry system to get around. Tourists are not allowed to rent cars and once you've travelled around the winding narrow roads you'll know why. The extensive bus/ferry system is the cheapest way to explore the island. You can go from one end to the other. The closest bus stop is a 10 minute walk. you can get bus/ferry tokens from the hotel office (the bus doesn't except paper currency) or go the post office near the bus stop and get a mutli day pass (this is the best option)

We stayed here 5 nights and then with a friend in Bermuda for the remaining 6 nights. When we got to our friend's place and told her about the Grape Bay, she said that it had been up for sale for some time now but they can't find a buyer, and that's when everything made sense!

Like many other people have said, this is a dying hotel. Until someone buys this place, they will do the bare minimum to maintain it and don't seem to care about people's opinions of it. If something breaks, they will have a go at fixing it, but if it's going to cost money, forget it. Again echoing other people, sometimes you feel like you're the only guests. The 'continental breakfast' is a total joke but at least it's free. The pool was nice but it seems they only fill it up in summer. Having a fridge in the room was helpful and the rooms were clean and comfortable, and that's why we didn't really mind staying here, it was actually quite funny! TV didn't work though, they provided coffee but no coffee maker and the AC unit was loud and obviously on its last legs.

The location is great and near a lovely beach but again as has been said, be prepared for a long walk down to the bus or supermarket if you haven't hired a scooter. If anyone stays here it should probably be young singles... the price is right but just make sure you know what you'll be getting before you book and don't have high expectations. If the rooms hadn't been clean this would have been the worst review I've ever written!