If you need a cheap room ($35) in town this is a great option. Short walk (about 5 blocks) from the ferry, and a 70 peso taxi ride to the airport. Full sized fridge in room, water cooler in courtyard, free coffee in the morning. No problems with noise, and the staff were accommodating. Nothing special, but a clean place with comfy enough beds.

we stayed at hotel pepita for 3 days 2 nights. the beds were great, the staff friendly, interior courtyard was great for meeting fellow travelers. great deal at $35.US, just 2 blocks from the square.

We have been to Cozumel 5 times now and we only started our trip there this time and went down south to Xcalak.
We stay at Hotel Pepita where the staff are always helpful and friendly, it is always clean, they have gotten new comfy beds and you always meet interesting people there and it is within our budget-35-40 dollars.
The downside is everyone was charging in dollars?? Big surprise since we were in Mexico!! I did not like that at all. It was way more expensive than 2001-inflation.....
I was NOT impressed with the new ferry station house, what an ugly eyesore that is and they think that they are doing it for us.??
I don't know about most travelers but, we are easy, happy go lucky and like the culture of a foreign counrty-we are not going someplace to find it is wanting to be American.
The "Real' Mexico we saw was wonderful and we saw new stuff on this trip.
I rented our car through Costco and it was very CHEAP!!! We drove it down to Xcalak and back through Ruins.
The jeep we rented in Cozumel for one day cost almost as much as the car we rented for a week. One other thing-If you rent a car thinking you are getting 4X4, don't believe it-they take out the 4X4 of every vehicle.
Our favorite pottery guy is still there and our favorite place to eat real Mexican food besides the street, is just a couple of blocks from the hotel and it is GREAT food and very reasonable.
We are trying to get back there this winter and spend less time in the ever increasing touristy Cozumel. We love Mexico.

Great place to stay and rest. I was well pleased with the room.Nice bed, air conditioning, Hot water. These rooms are not high Quality but are nice for the price. 3500 pecos. About 27.00 US a night with a 13.75 excange rate. Great places to eat near by. All the comforts of home. Have a spanish speaking friend make reservations for you. They are not good with english. I aways felt safe there and walking the streets around it. It is two blocks from the tourist area for your convenience. GOOD Stuff.