We have stayed in Panajachel many times over the past 22 years and have stayed in most of the hotels there. Hotel Dos Mundos is our preferred place to stay in Panajachel. We recently enjoyed a four night stay there and can report that it is still the nicest hotel in Panajachel. The location is great: just off Calle Santander, which is the main street with plenty of restaurants and shops. So it's near everything you'll want, but it's quiet! It's set in lovely grounds and there is a pretty pool. The pool is very welcomed, as you don't want to swim in Lake Atitlan. The rooms are relatively large and there is a large TV and a phone in each room. Breakfast is included in the price and its very nice. The restaurant also serves very good food for lunch and dinner, and there is a nice coffee shop and bar next to the reception and near the street which serves great 2 for 1 mojitos during happy hour.
We had difficulty using the hotel's website to make our reservation in advance, so we used a travel agent in Panajachel to book the room for us. As it turned out there were few tourists in town and we probably did not need to make a reservation anyway.
We highly recommend this lovely hotel. We hope it never changes!

Stayed for three nights over Thanksgiving, and were well pleased by how affordable and comfortable it was. The Hotel Dos Mundos was just right for our family with three small children. They enjoyed the pool, which was a little chilly but not enough to deter them. The rooms were clean and quiet. Ours was back in the well-groomed courtyard by the pool, the area that I recommend most. The restaurant doesn't open for supper until 7:00 PM, which was kind of late for our kids, so we ate elsewhere, except for breakfast. The lakeshore, restaurants, and stores were easily accesible when we wanted them.

Yes is in a good location, but overall is a bit of a let down. The photos of pool area make it look fantastic, but the rooms are a little down at heel, and the bathrooms leave a lot to be desired. For a place that describes itself as a "luxury" hotel, you don't really expect cracked tiles, a shower that hardly drains and is grimey, plus a public toilet type toilet roll dispenser. Plus an added cockroach! Breakfast is included, but not up to much. This place shouldn't really be charging more than $30-$40 per night. It needs to pull its socks up, and refresh those bathrooms! and please get rid of the public toilet type toilet roll dispsensers! Then you can charge $70/night!! By the way, the good location comes with music from nearby bars until the wee hours. so in summary: luxury - but only if your standard is that of a gap year backpacker.

Panajachel is a cool city on the shores of Lake Atitlan. Hotel Dos Mundos is a great choice while stayin in Pana......in fact, I didn't really see a nicer option. They have a good Italian Restaurant that serves only Italian food, but it was delicious.

Nice rooms, decent pool, quiet atmosphere.