The Catalina is the budget party spot in the heart of South Beach's hottest block and attracts plenty of twentysomethings with its free nightly drink hour, airport shuttles, bike rentals, two fun pools, and beach chairs. It's across the street from the beach, but nobody seems to mind the short walk. Each of the Catalina's three buildings has a distinct feel: The original Catalina (with the smallest, most inexpensive rooms) is an exercise in camp, with red-shag carpets, two-story glass windows, and monumental sheer drapes. The midrange rooms are in the old Maxine Hotel, decorated in rock baroque and featuring a karaoke machine in the lobby. Room 400 here is one of the beach's best values, with a private sundeck overlooking the strip. The most luxurious part of the Catalina is the Dorset Hotel, which now houses the hotel's biggest rooms as well as its Asian restaurant, FKU. Another outdoor restaurant, Maxine's Bisto, overlooks the passersby on this very sexy strip of Collins Avenue, making the Catalina an entertainment complex in its own right.