Good points: location excelent, hotel new and beautiful, big room with very nice furniture, staff helpful. Price (120 euros) is very good in these aspects.

Breakfast is just so so, but aceptable.

Bad point (only one): the hotel is between two bars, one of them runing by the hotel. We stayed for three nights. The first and the second were nice and quiet. The last one was horrible, with a very loud music coming from outside, it was impossible to sleep even with windowns firmly closed (I don't know if the music came from the bar of the hotel or from the other one - I didn't ask, because I will not stay in that hotel again...). So I understood why it was just us in the breakfast: such a beautiful hotel with a good price should be full, but not with very loud noise!

Besides, Sardinia is wounderful and I am sure we will go there again: if you love nature and beaches with native vegetation, that is your place!

Now i stayed in Palau for 5 days. The hotel was very nice, like most within Italy. Location great, right at the port of Palau. Family run and new so all very nice. The bar had no atmosphere but i'm sure we were one of three couples staying at the time. Sardinia is susposed to be packed in the summer (may and september i would recommend)
Palau itself is very small and very quite. Most hotels seems to be resorts quite far out of towns but this is small and located central. (we like for bars and resturants) I would not recommend a stay in Palau unless your into travel. This hotel has no pool or outside seating its a base for sleeping (a very nice one) to go out for the days and walk out for the evening. A hire car is a must and travelling is required. Best beach is where all the wind surfers and kite surfers are, we went every day - beach bars etc. Its a great its called Porta Pollo very cool and just 4 mins drive. We also went to Porta Cervo but didn't think much, a bit like sandbanks on a very small and wealthy scale. I'd have to stay i prefered Alghero on the west side