I'm a fan of staying downtown and NOT doing the AI thing. Cozumel has a great many excellent restaurants in the downtown area, and can cater to any budget. HOWEVER, if you decide to stay downtown, be sure that the dive op will pick you up downtown. Last time I stayed downtown, I stayed at Casa Mexicana and used Aldora Divers. Casa Mexicana is very nice, and a breakfast buffet is included, so you can grab breakfast and walk across the street and up a block to the Aldora pier. Aldora is pricier than many other dive ops, but it is a first class valet dive op -- Steel HP tanks, including 120s if you are big and can handle the weight, everyone dives computers, long SI on the beach, they take care of all equipment (except wetsuits), and I've never had a bad DM with Aldora -- they are all top-notch. Staying downtown and diving with Aldora, or any other Dive Ops that pick up at the downtown pier, will save you a bundle in taxi fares. I've also stayed for the last few years at Casa Del Mar, and dove with Dive with Martin. It's a group trip every December (I've got my reservations to join them again this December). I like Casa Del Mar, and breakfast is included in the room price. I also like Dive with Martin, but it is not the same level of service as Aldora, but it's also less expensive; its a very good dive op if you don't want to pay extra for the high capacity steel tanks and more personal service. But because Casa Del Mar is located down near the Cruise Ship Pier, and Dive with Martin is right at the Pier, we always end up with a lot of taxi rides into town for lunch and dinner. With a big group, we can usually all fit in 2 vans, and split the cost 6 ways, so it's not a big deal. But if there will be just 2 of you, budget extra for taxis. Now if you do choose either Hotel Cozumel (I stayed there in July '12 -- beautiful Hotel, very nice rooms, TERRIBLE food for the AI) or Blue Angel, you can walk downtown for meals - its not a bad hike. I should add that I don't like AIs on Cozumel because I'm a foodie that drinks very little; IF you either: (a) are not into food and are not bothered by mediocre quality; or (b) drink a lot, then an AI might well be your best bet.