Owned by an expat Canadian, El Velero is a small, homey, hacienda-style hotel that fronts right on the beach. The rooms, about 20 in all, are air-conditioned, very clean, and spacious, with vaulted ceilings (at least on the second floor, where we were) and safes in each room. Staff was almost uniformly helpful, very friendly and spoke good English. The grounds are small but well kept, and there is a small pool--mainly used by families with small children--next to the restaurant.
Try not to get a room at the back of the hotel, or at least bring earplugs if you value a good night's rest, as the partying at El Pescado Loco across the street can get raucous.
If you were foolish enough to bring American dollars with you (as we were), the hotel will happily exchange them for colones at a not-too-bad rate.