I'm the guy who is doing the 2000-2001 updates on two of the Fodor's guides (Fodor's Gold Guide to Belize & Guatemala and UpClose Central America), and below is what I say in one of those about Coconuts. In short, it's a very good spot for the money. Also think about Banana Beach, which is even nicer (one-bedroom suites with kitchens, pool), for not too much more.
<BF>Coconuts Caribbean Hotel.</BF> Operated by the same folks who run Banana Beach, this motel-on-the-beach stays busy year-round, thanks to attractive rates and perky management. The two-story stucco building has 12 big, airy rooms, with a large L-shape sofa that becomes an extra bed. The bar on the resort's white, sandy beach serves refreshing rum drinks and snacks. The manager is eager to arrange diving and snorkeling trips for you and is a great help with restaurant suggestions. Grab a bicycle free of charge. <ITAL><DIR>3/4 mi south of San Pedro</DIR>, <PHONE>26/3500</PHONE>, <FAX>26/3501</FAX>. <WEB>www.coconutshotel.com</WEB>. <NROOMS>12 rooms</NROOMS>. <FACILITIES>Bar, snack bar, beach, snorkeling, travel services</FACILITIES>. <CRCARDS>AE, MC, V</CRCARDS>.</ITAL>
Belize First Magazine http://www.turq.com/belizefirst/