Set on sandy grounds fringed with palms, the Iguana Reef is both upscale and informal. It's the kind of place you can roam around barefoot by day, but you might dress up for dinner. Bamboo furniture, Mexican tapestries and local artwork adorn the jewel-toned rooms.
Outside, you can lounge poolside or pull up a lounge chair on the fantastic waterside area by the dock, which is now home to a small seahorse habitat that tour boats often stop in to visit.
At the end of the day, take your pick from the extensive menu of tropical cocktails at the beach bar and watch the sunset. A continental breakfast is included.