Hotel Del Rio is located North of town on the beach, I believe it's the last place to stay before you hit the cut, the play ground is right next to it and the Seven Seas Hotel is on the south side of it. Never stayed there but walked by it on my way to Papi's and The Hammock House.
I did stop in and looked, nothing fancy, no air, but very inexpenience.
The Tides Beach Resort is next to Seven Seas, there is a good Dive shop there (Patojo's)
Great location, right behind Papi's and stumbling distance from Hamock H. Two of my favorite places.
Have a great time!!