Occupying a tranquil seafront stretch five km south of San Pedro, this place ranks with Matachica and Cayo Espanto as the top three hotels on Ambergris Caye.
The British and plantation-style hotel is a picturesque mix of villas and thatched casitas that offer casual colonial elegance. White villas with turquoise roofs are nestled amid swaying palms and gardens splashed with bougainvillea and hibiscus. The sandy white beach is small, but hammocks slung between coco palms provide idyllic sunbathing. There are no fewer than three gorgeous pools with views of the ocean and reef.
In the small lobby, which has a Balinese-style entry, the staff is quick to attend to guests. The small lounge has a concierge desk, phone and cane sofas. Tables and chairs are draped in white in the air-conditioned restaurant, where all meals are served a la carte and dinners emphasize fresh seafood (including lobster). The bar by the water's
edge has a salty tang, with soaring thatch, screened windows on all sides, a mahogany and terra-cotta interior and a rustic porch.
The candle-lit Palmilla Restaurant is top-notch; the latest international master chef arrived in October 2007—Jose Luis Ortega adds a savory, chili-infused touch of Old Mexico and New World influences to the outstanding fare. Palmilla has always been renowned on the island for its seafood and desserts.
The beachfront pool has been artfully constructed and offers an alternative to swimming in a cordoned-off area of shallow murky water at the pier. The sandy beach ends at a concrete wall that drops a few steps to the water. Sunning is on cushioned chaise lounges. The pier also has a fully equipped dive shop that arranges fishing, diving, snorkeling and mainland tours with some of the island’s best guides. A beach volleyball court awaits the energetic. Kayaks, sailboards and golf carts 
can be rented, but bicycles are free. Free shuttles run guests to and from town five times throughout the day. Airport transfers are likewise gratis.
The tasteful accommodations offer palm-framed views of the Caribbean. All are bright and breezy, boasting cream-colored tile floors, stylish mahogany furnishings, shuttered windows with wood jalousies, ceiling fans, salt-white drapes and spreads, and mountains of fluffy pillows on comfy king or queen beds.
Fresh hibiscus blossoms garnish the mahogany bureaus, desks and spacious shower-only baths. Refrigerators have complimentary bottled water, and adjoining rooms share the wraparound balconies. (Avoid Room 15 with its single window above the kitchen.) Comfortable thatched casitas in the garden by the beach have queen beds (some have kings) wrapped in mosquito netting (more for romantic ambience than out of need).
Each of the eight Plantation Rooms have queen and king beds upstairs and open to private terraces that face the pool and beach. Plantation Suites feature sitting areas with private balconies. The rattan-furnished Windsor Honeymoon Suite has bright tropical flourishes and a sprawling wraparound deck.
Two- and three-bedroom villas on the beach sleep up to six and nine respectively. Room service is offered at mealtimes. Security is present around the clock. The newest accommodations are the Infinity Suites, which are massive, tastefully furnished apartments. They can be combined for groups and families.
The staff is the best on the island. It would take a very picky person to find fault with this soigne resort.
