My students and I stayed here last week during our Mexico school trip. We stayed at Los Aluxes for 3 nights and I'm happy we were able to. The hotel is located a few blocks from the center of town which makes it quiet but close to everything. The lobby is quite large and easily accommodates large tour groups like ours. The staff is friendly and helpful; again knowing Spanish definitely helps!
The pool is small, but after a long day of visiting ruins and cenotes, it's perfect for a dip. Also at night, the breeze is unbelievable and you could practically fall asleep on the swings. There is free wireless internet in the pool area, as well as in front of the restaurant.
Breakfast and dinner were good at the restaurant. Some nights they had a pianist and a mariachi band which was nice. I really enjoyed the bean paste which came with the eggs in the morning.
My room was big and comfortable. The bathroom was clean and the shower had lots of hot water and good pressure. The switch to the the A/C is in between the buttons for the lamp, and it does keep the room cool. The beds and pillows were quite comfortable.
Little things I did not like were that the wireless internet in the business center did not have convenient hours. It was also expensive (around $2 an hour). If you used the internet for a half hour, you would still have to pay the $2 or M$25! Our keys stopped working once in a while. So we had to ask the front desk to "zap" and re-program them.

But overall, I enjoyed my stay at this hotel. There's lots to do in Merida, especially shopping on Sunday in the park. Enjoy!