We only went for a week and it was jolly quiet. The Canaries at Easter, quiet? It must be a credit crunch effect. Castillo de Elbe is a lovely budget hotel - very clean and the rooms are spacious, But I suspect your impression of this hotel will be based on which room you are allocated. We were first given a dull room on the ground floor. We immediately asked to be moved and were given a bright south facing room on the top floor, which was just lovely.
The pool area is very nice - lovely Tiki bar. The pool is not heated, but that is normal in my experience of the Canary Islands (Are they trying to give people heart attacks?). But the hotel in general is very well run and the staff are helpful.
The location is probably the biggest gripe. It's a good half hour walk by the coast path into Caleta, though there is a free bus on the hour. A taxi back after a night out is inevitable, 5-7 Euros. There are some good restaurants within walking distance of the hotel though...
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