About ½ km (¼ mile) south of town, this charming, small hotel with a spectacular sea view sits on a grassy lawn between the rocky shoreline and the entrance to Montezuma's famous waterfall hike. The place has a peaceful atmosphere—you can cool off in a natural tidal pool at low tide or lounge about in one of the palm-shaded hammocks. The intimate terrace restaurant, open to the public, serves an excellent homemade breakfast (not included in rate)and lunch,with a focus on organic foods. Wood-panel rooms are rustic and small, but comfortable; second-floor rooms have more windows. All rooms have private bathrooms. The two-story oceanfront villas next door have four bedrooms, making them great for larger groups.