JENANDKEN:
Okay guys so maybe my request was too vague. I have been looking at Sheraton Hacidnda,Twin Dolphins, The Westin, and Melia San Lucas. Has anybody been to any of these and do you have any thoughts out there? I assume the dive operators will all pick you up, by boat or van??
Twin Dolphins is older. Sheraton, Westin, & Melia are all recent, with the Westin the newest and Melia the next newest.
Twin Dolphins is right next to Bahia Santa Maria (well, maybe 200 yds), which is a nice snorkeling beach. The distance from Cabo for each are: Sheraton, about 10 km; Twin Dolphins, about 12 km; Melia, about 20 km; Westin, about 25 km.
I believe all the above-mentioned (including the Hilton which is not above-mentioned) are all "gran turismo 5*" or AAA "4-diamond", with rates to match.
We've stayed at the Hilton, which is right next to the Melia. The Hilton is really nice. I've met folks who stayed at the Melia, who also really liked it. There is a swimmable beach there in good weather (artificial breakwater), and an on-site op (Tio Sports). However, the best diving is in Cabo itself. You can arrange excursions where you get picked up by van, but you pay for that. Baja Wild is one such outfitter. Otherwise, take the bus, hotel shuttle, or car rental to town, and make your own arrangements with an outfitter. For the bus, just walk out from the hotel to the highway, to the bus stop, and flag down a bus. I think bus fare is on the order of 30 pesos ($3).
I've also met people who stayed at the Sheraton Hacienda who really liked it.
Bus/shuttle/taxi/car rental comments apply to all the above hotels, btw.
In town, most of the dive ops are out of the Marina. The exceptions are Amigos Del Mar (close to the Marina); and Cabo Watersports, Andromeda, JT, and Tio (on Playa Medano). Further up Playa Medano, inside the new Riu Palace architectural monstrosity, there's also a dive-op. Since the Riu Palace is new, they may be running specials. August is low season anyway, so you shouldn't pay anywhere near rack price.
If you stay at either the architectural monstrosity, the Villa Del Palmar, Melia San Lucas (as opposed to Melia Los Cabos), or Pueblo Bonito, you're on Playa Medano, and a reasonably short walk to the Marina (or Playa Medano).
Have a great time!