My wife and i stayed here together with 2 children (one baby) and 2 other adults in May 2006, we also stayed in 2005 (just the 2 of us). We stayed for 10 nights, booked direct and sorted our own transfer. The hotel isnt" in any English travel brochures.
Doing it this way was very cheap, the taxi from the airport took 10 minutes and was inexpensive.
The resort of Playa de Palma is beautiful,the seafront is one minute from the hotel, there are plenty of nice bars and restaurants, shops etc, on a very long "promenade", the beach is very nice, with views over to nearby Palma. (lovely city, 20 minutes away on the bus). The resort is full of Germans, the hotel hardly had any English people staying, mostly German, Spanish, French. This didnt bother us at all. No rowdy behaviour or trouble, just a nice busy but pleasant feel to the whole resort. There is a great waterpark in nearby Arenal which is worth a day out. Eating out is quite inexpensive.
We stayed half board at the Caballero, the food is good without being fantastic,certainly good enough, the restaurant is big and very clean, the staff are efifcient and the rooms were a good size and spotless, with a maid service daily. All rooms seem to have a balcony, the views are pleasant although you cant quite see the sea from most as the hotel is one block back from the front and is sideways on to the sea. The hotel is set in its own large grounds and is not overlooked on one side although some blocks of flats are being developed on the other nearby.
The hotel has large pleasant interior lounges, the bar area is nice and outside there is a grass area,tennis court, pool etc, plus an outside bar. The entertainment team try hard, there is something on every night, quiz, bingo, shows, (some professional acts). also sports and games during the day. trouble is that most of the guests don"t seem interested which we didn"t understand. The clientelle are mostly middle aged and upwards who seem there for a quiet break, the younger groups of guests seem to go elsewhere at night for their entertaiment. There does"t seem to be very many families with children which was a shame as the place could have done with a bit of livening up.
There are no bad points at all, maybe a young family or young couple may find the hotel a bit low key, but there is plenty to do in the resort. The Caballero is excellent value for money, very clean, pleasant hotel, decent food, very good rooms, a bit of entertainment at night and sports games during the day, its very handy from the airport and the resort is beautiful.
We won"t be going back for a while as we"ve done all that there is to offer as we"ve been twice, but would reccomend the hotel and resort as excellent value.

We stayed at the above hotel for the 2nd time last week, purely on the quality of the hotel & location, hoping that the noise we experienced last year was unlucky.
The hotel is close to Palma airport, a few minutes from the beach, and a short taxi (or easy walk) from both Can Pastilla or Arenal.
The staff are helpful & the rooms are pretty comfortable. If you are the lounging type there is an outdoor pool & other activities organised.
The only down side is that the hotel appears to be a regular for the German stag parties and the like, who you do not see during the day but let you know nightly when they are returning from the nightclubs with energetic screams, running down the corridors & banging doors at between 3am and 6am. This gives you no opportunity to have a good nights sleep.
Overall a good quality hotel for couples or families due to the facilities, but would be better if the hotel curbed the 4 to a room clubbers.

I have been twice to this hotel which is only about 5 minutes by taxi in can pastilla. It is of a very good standard and kept very clean. The beach is about a 2 minute walk away and there are also plenty of shops there. The food at the hotel is also very good and I have no hesitation in reccommending the Hotel Caballero.