Location is fine, a few minutes from the beach and a 1/2 hour walk to the town of Alcudia.
Except for the really poor air conditioning system and a lack of a view (we were on the 1st floor), our room was ok, but nothing special.
The reception and other staff were friendly and pleasant enough, our room was cleaned properly every day.
The bar is ok, but the pubs on the other side of the road are far better.
Both the Breakfast & evening meal buffets were excellent with pleasant and hard working staff - I looked forward to eating there every day.
The gardens are large and nice enough but some of the caged birds were a sorry sight.
Most guests are German and the hotel is thus adapted, sadly a few fellow guests were very irritating and openly rude to both us, other guests and the staff, to be honest, we just found these people both funny and quite sad !! Luckily these were a minority and we met some nice people including some Swedes and fellow Brits - anyway, the behaviour of some of our central European cousins is hardly the hotels fault.

Bahia de Alcudia has a great location. 2-3 minutes to walk to the beach, and 6-7 minutes to the harbor where most of the restaurants and the shops are located.

This is a hotel for Germans! The hotel staff usually greeted us in German, especially in the restaurant. (Except for one of the front desk staff, who understood that the hotel had a few other guests than Germans. This guy was great and very helpful.
Most of the other guests seemed to be Germans anyway.

Reception area looks nice and clean.
The rooms are okay, but far from the 4 stars the hotel claims to be.
In the bed, every spring was very noticable, and at least in our hotel room, the beds could have been replaced. Parts of the bed was directly uncomfortable, and after the first night my ribs hurt a bit due to the bed.
The bathroom was more or less cleaned every day, but the bathtub appeared not to be cleaned during the week I stayed there, July 5-12, 2011.

Location and the relatively "low" price made this hotel a decent stay.
Bed quality will make me think twice before coming back, but all in all, an average hotel.

I stayed in Bahia de Alcudia 14 days in May 2011. I usually prefer staying in Playa de Palma (close to the airport - 15 min by bus), but my friends and I decided to spent last year holidays in the north of the island.
Generally the hotel is good. It has a nice location. You can go about 30 minutes to the old Alcudia with bars, restaurants and shops. There, you can make nice photos and buys souvenirs. Of course you can use public transport to go there. Using it you can also go to the Can Picafort. This is vacation town with promenade with shops, bars etc.
The beach is beautiful. It is wide, with gently sloping to the sea and nice sand and water sports.
The food is delicious. Twice during the stay occurred thematic dinner and chocolate fountain (children and adults love it)
We do not know how look the animation, because we spent all summer on the beach and making trips by public buses.
The only thing that we did not like were the rooms. Of course, they were cleaned every day. But we heard that the same "size" of rooms got one, two and three people. I agree that for two people the rooms are ok, but for 3 adults certainly not. We had nowhere to hide suitcases, not to mention the transition between the three beds. It was just as tight for 3 adults. Maybe it is possible to get bigger room for extra fee, but we do not know.
Finally I want to say that we had good holidays in this hotel and we would recommend it.

Our tips:
1. We heard that having a room on the highest floor isn't good, because of the heat during the day.
2. Opposite the hotel is the bar (the owner Dave - from England) make good drinks for normal price.
3. If you want to buy for example beverages cheaper, you have to go to the shop called Eroski Center. You have to go to the intersection of roads (leading to the beach) and then turn right and then go straight ahead about 10 minutes and you are in Eroski Center.
4. Opposite the hotel is the spanish travel agency offering tours at reasonable prices.

We stayed in Bahia de Alcudia 7 days in June 2011. Maybe, if we were germans, we liked to stay in Bahia de Alcudia more, but... we faced with some dissapounting things.
The hotel is situated in very good place - not on the shore of the sea, but it is only 5 minutes of walking to the beautifull sandy Alcudia beach, about 15 minutes - to the amazing Alcudia old city and 5-10 minutes to the Alcudia port and main street.
We had room at 4 th floor with a view to street and the mountain and could see a little bit of the sea. The street wasn't overcrouded, but at nights we heard noise from the busis and motorbikes. The room was cleaned everyday, but do not expect 4 stars hotel room, maybe for 3 stars. All rooms have balconys, bathroom, condicionier. But there are not minibar with little fridge, you have to pay some money if you want to have it in a room :).
Hotel has very beautifull garden with parrots and other birds. Pool area is beautifull to, but not enought boards.
At hotel stay mostly germans, polish and some people from other countries, mostly older people or families. That's why, staff always meet you saying "Hallo" in german but never, as you espect in Spain, in spanish "Hola" or "Bueno dias". Some people in reception in English or Spanish talk very puerly and sometimes we had felt somehow undisarable...One evening after dinner near lobby was presentation of wines, but the man said that it is only for germans and swiss...And the attitude to you don't depend on money: we have spent a lot of money during dinner (for wine), at the bar for cockteils and other drinks, rented cars and motorbikes, but staff liked germans much more.
Very poor animation. Only few evenings were with something like spanish program: the singer with guitar and dancers. One evening we have seen something very silly and dissapointing: a guy from hotel staff (he worked with children animation usually) tried to dance samba, Jackson and many other famous dances. But...he is not a real dancer, he did many vulgar, not proffesional, dance steps and danced alone for about an hour. All other evenings at hotel were boring: disco with anyone dancing, the same music all the time...and...every second song was in german! That's why we after first cockteil or sangria were leaving hotel and spent time in the Alcudia's bars,
Only good words I can say about the bar and restaurant waiters, they were wery kind and helpfull, always raising the mood.
The food was ok., especially at dinner: good choice of fish, meat, fresh vegetables and fruits.
One more point: we had to leave late in the evening (dinner was included), so had to leave our luggage in luggage room. After day at seaside we had to take a shower: so...it was a shower in the garden's area with disgusting smell and without key to lock.
Conclusions: if you are going to travel around the island (as we did) and to stay in hotel only for breakfest, dinner and in the evening - it's quite a good value for money, if you want to spend mire time in hotel and you are not german - better avoind it.