I stayed here 2 years ago, right after the hurricanes (Rita, Wilma). Not much has changed. The place is still old and a bit worn, but worth the $60/night for a room. It's clean, somewhat comfortable, and aside from the lack of towels and water pressure, everything you need in a room is there.
The hotel staff is among the nicest I have ever encountered. They don't speak english, so that's an issue if you don't speak spanish, but they couldn't have done more for our group than they did. WAY beyond the call of duty.
I will stay here again with my students. You can't beat the value for the room and proximity to 5th avenue, Senor Frogs, Carlos & Charlies, and of course, the ferry to Cozumel.
Incredible! No frills says it all, but if you are looking for a clean room with wonderfully nice people...this is your place. Just bring your own towels and soap!

Do not stay here!!! We were told by the Molcas that the hotel was repaired after the hurricane and was fully operational except for the restaurant. The hotel is not habitable and we had to move to another hotel. The balconies are blown off and, if you can get your sliding glass door open, you step off into thin air two stories above the street. There is so much mold in this hotel that you can't breathe. One room had green algae growing down the walls. Another room given to our group had water seeping out of the bathroom wall, running across the floor, and out the door. The water pump for the hotel water supply failed while we were there and we couldn't bathe or flush the toilets. We called our tour company and got our money back but not before we had a very bad experience here. This hotel is too badly damaged from the hurricane and will have to be torn down. We repeat: it is NOT habitable since the hurricane.

We needed a hotel for one night only. Central location was important. The pluses: air conditioning worked well, they had a small refrigerator, the bathroom was clean and the water pressure in the shower was fine. The minuses: poorly maintained, stained tiles, cracked sliding glass door, the door in the room could not be locked, the door leading to the balcony did not lock. We were given a different room and it was better but did not have a security lock on the door. The hotel was noisy being on a busy street. The receptionist was surly. You did not feel welcome at all. This hotel used to be very, very nice. What a shame.

My friend and I wanted a budget friendly vacation. Hotel Molcas was perfect. The price was great, staff was friendly and it was right next to the beach, main strip and ferry dock! I loved it and would definitely stay there again!