I stayed in the Hotel Flamingo for a week in June 2003 with a group of friends. It was wonderful, and I highly recommend it. I will go back. The place is old, but decent. It is a two star place, but I am definitely going back. The staff is FABULOUS, and the prices are great.
Personally I didn't care if there was a pool because I spent a couple hours each morning on or under the water so I didn't need a pool, but some people really need one. There are a number of public beaches with a variety of services where you can hang out and sunbath and snorkel and eat and drink.
The biggest problem with the Hotel Flamingo would be the water temperature and pressure. Manager Kelly says to let the water run for a while and it will get warm. The water never got HOT, but it was okay. If it doesn't get warm, complain to Kelly. The rooms towards the back are closer to the water heater and get warm water quicker; rooms 28 and 38 are the best. Bruce from Topanga says he removes the shower head to get better water flow.
The hotel is close enough to easily walk to most places, but far enough off the tourist streets to be quiet. The lobby became the hangout and we met a lot of really great divers staying there.
Note that there is no elevator at the Hotel.
Incidentally, rumor has it that the owner Tom recently finished paying off the place, so now he is going to start putting more money into fixing things up. He is working on upgrading the bar to get more of that business.
FOOD:
Julian at the HF makes great waffles or a fruit plate for breakfast. He is "famous" for making awesome margeritas. One night we arranged for him to BBQ some chickens and shrimp for us to have a dinner for 8 right there at the inside patio of the HF. It was great.
There is a tiny family run "diner" across the street called El Morrito III. It is definitely a "local" place. The prices are VERY reasonable, and the food is good and authentic. You can wander over and order, or the Hotel Flamingo staff can order for you. The diner guy delivers the food to you at the Hotel, and comes back in a while to gather the dishes and take your money. They don't speak english, except to tell you how much you owe.
Kelly, the HF manager was a great source of information about restaurants.
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If you are looking for a Island equivalent of a cruise ship, then Hotel Flamingo may not be the right place for you. If you want a nice place for a great price, with friendly staff and patrons, then go to the Hotel Flamingo and spend the rest of your hard-earned pesos on excellent diving.
Just my opinions.
Wristshot