Overall, we found this hotel to be a good value. For $46 US you get a junior suite (very large room with 2 double beds, kitchen table with 4 chairs, minifridge, kitchen sink, a/c and cable TV). It is in a quiet section of Huatulco between playa santa cruz and playa chahue. NO disco nearby!!! The rooms are spotless, the hotel staff very accomodating. They lent us a coffee pot, 2 bikes and they decorated our room with flowers daily.
The hotel has a vey nice swimming pool and the beach club that belongs to Castillo Huatulco Hotel is 2 blocks away and as a guest of the Mexicana hotel you can use it for 15 pesos per person. Otherwise, the public beach of Santa Cruz is a 10 minute walk or a 25 peso taxi ride away.
The hotel also has a small restaurant that has sporadic and slow service but there is a grocery store 1 block away. We took most of our breakfast and lunch meals in our room and then in the evening took a taxi to the town of Crucecita for supper. I think for a family with little kids this would be a good option to save on money and hassle of eating out 3 times a day.
On the down side was the sporadic hot water in the showers. The "boiler" kept going out...
Also if they had a microwave in the room I think that the hotel would then rate a very good rating.