I stayed at the Argentino Hotel in Piriapolis in February, 2006. Fortunately, we only stayed for 3 days. It was awful! Even when we rented one of the "recently renewed rooms" and one of the most expensive room in the hotel.

The building resembled a public house or a hospital: very tall ceilings; huge corridors, with no furniture; floors were old and damaged, elevators were old and did not work properly.
Rooms were not well appointed. In those rooms that were "renewed", small TVs were placed on some iron-made tables which, certainly, had nothing to do with the old fashioned style of the hotel. This was just one more detail that showed the poor quality of the hotel. There were no blankets available: just some small ones, similar to airplanes blankets.

Bathrooms´ windows faced the corridors, so you could hear noises from the bathrooms when you were walking the 150 m corridor that stood between your room and the elevators. Regarding "renewed" bathrooms, pls expect some renewal from the 70´s, nothing after that. Hot water was missing sometimes. The quality of towels and soaps was really poor! Not even in some cheap budget hotels I had found stuff like this.
Pools were ok, even when they needed extra maintenance ( painting and some other details were missing).
Breakfast was ok, nothing great but not bad.
By night, there was a live music show that gave some fresh air to the overall depressive hotel.

The exterior of the hotel is impressive: it looks really nice. Unfortunately, the interior is not quite the same.
I found no better hotel at Piriapolis: the whole city lacks a good tourist infrastructure. Just budget hotels. Caffes and restaurants were also modest and did not seem very clean.
Beaches were good.

Visited the Hotel Argentino on the 14th of January. The building does not resemble the web pictures. The building reminded me of an institution in the U.S.(ie courthouse jail or welfare office). The rooms were dark musty and rundown. The bed was a weird version of a futon and the pillows were as fluffy as airplane pillows. No TV in the rooms and no water pressure (hot or cold ) so your daily shower is out. The food was bad buffet style. I would try one of the smaller hotels in the area. Although I really do not know what there is to do in Pirapolis. The place reminded me of a cross between a run down Balboa Island and Tijuana. I apent 2 days then returned to the civilization of Buenos Aires. I won't be back soon Frank

This hotel is well worth staying at if you are going to Piriapolis. It is a grand old hotel with all the style that newer hotels seem unable to replicate. We had a room with a river view and balcony which was actually a suite with two rooms with ceilings 20 feet high. The breakfast was outstanding, the service excellent although don't expect any English to be spoken, and the facilities were very good. The pool area is particularly well appointed although the pool itself really needs renewing. The location is A1 with the beach just across the promenade road. Be aware that the river is tidal and so on some days the beach doesn't exist. I would head straight back here if ever in Piriapolis.