The only thing about these ratings is that, when you try to find a hotel, the best/worse rated might not be exactly a guideline for you. What I mean with this is that if you go to Punta during the high season where all rates go up in an incredible way, you might end up paying too much money for the service that you will get. For instance, you would expect more from this hotel if you stay there on New Year's eve, when they charge 300 US Dollars a night. But that is how Punta del Este works: extremely overpriced during Christmas-January 10th, but affordable the rest of the year. This hotel can be great or horrible, depending on what you are looking for. It has no services, just accommodation and breakfast and not very new rooms, which might be a problem for someone looking for more in town. On the other hand, it is one of the cheapest hotels in Punta, so I don't really know if you should demand more from it. If you are looking for a cheap place to stay, well located (a few steps from Conrad Hotel, where many conventions are held) it is a great choice.
To sum up, it is a clean place to stay, below Punta del Este's budget but without any other services. It's up to you to decide whether this is the place for you to stay or not.