My husband and I were in BA last December 05 and wanted to get out of the city for New Years Eve "like most locals" ... we heard some good things about Colonia and decided it was close enough that we made arrangements on the fly through Bouquebus. It was a few hours by boat to Uruguay and sounded like a good way to relax towards the end of our trip. The trip was all inclusive ... boat ride, transportation from the boat to the hotel, meals, and even a city tour in English. Well ... you get what you pay for.
The boat ride was actually kind of fun. The transportation from the bus was a hectic as they weren't very organized, but we managed to get to the hotel. The hotel was a bit frightening.
The facilities are on the older side, the rooms are small and not very nice at all. The bathrooms were as basic as basic gets, with very poor water pressure.
Our room was on the second floor and the hotel didn't have an elevator ... so they had to carry our lugguage on their backs up the stairs. The outdoor pool was large, but also on the older side. The pool chairs were those straight out of the 70's ... if you managed to get one and not sit on the grass.
The meals at the hotel not very good at all. Breakfast was very basic. Dinner was cold and bland ... lot's of cheese on everything. The service was lacking.
The hotel was located close to the town, probably a 15 minute walk, but there was nothing else around ... so bring a book, or two.
Overall, I would say ... if you can get another hotel ... do it. If you're stuck ... it's okay, if you close your eyes to most of the details.
ps. Most of the staff at this hotel does not speak English ... but will struggle to help you out.

i actually enjoyed this hotel quite a bit, the indoor swimming pool was pretty big, the staff very friendly, the restaurant way above average, sure, it is not the waldorf or the delano but it is still good

We booked this hotel through "Buquebus" (their staff recommended it highly) but I must say it's not for the winter season.

The hotel lacks central heating, there are small and noisy hot/cold air conditioners in every room. As a result, hallways, restaurant and lobby are freezing cold and in our first room we didn't get enough heat from the AC so they had to change us to another.

Also, don´t go for the "Spa". The Spa is actually a very nice indoor pool and a (hallway) separated sauna room, but incredibly there is no changing room near them, just toilets, so I don´t think anyone has ever used the sauna (imagin' yourself going out sweating and back dripping in the open hallway). The hotel is pretty big so walking from your room in a robe to the pool is also painfull in such low temperatures.

The walk to the barrio historico is 20+ minutes long (nice if you like walking and is a fine day) but if it is windy, very cold or rainy you will regret not being in a posada.

Finally, the restaurant is totally overpriced for such small dishes.

This might be a nice place to stay in summer (with the nice grounds, tennis courts and outdoor pool), but in winter I would definitely recommend staying in a downtown posada.