Stayed at the Blue Waters Inn for one night in December. There were 5 people in our party so we got two rooms each priced at just about USD110/night.
I find it commendable that at the busiest time of the year for Caribbean islands, while the hotels was fully booked, we had excellent service. Hotel is well maintained and has a warm relaxed feeling to it.

Pros:
Beautiful and clean room and facilities
Helpful and friendly staff
Directly on waterfront
Restaurant on property consistently good
Landscaping is gorgeous
Free Parking available
Self contained apartments contain most general electronics
All rooms offer balcony views of beach
free kayaks, beach towels and beach chairs
maps and tourist guides available at checkin
glass bottom boat tours to angel reef and little Tobago available right at the hotels beach.

Cons:
Hotel is located over an hour away from the airport and port and the road is quite winding and narrow for the inexperienced driver.

Lunch buffet runs out of food quite earlier. If you are staying here make reservations for the restaurant and go early top get the best service and food.

There is no pool on the premises

At the end of the day, if you are interested in a lovely, serene hotel away from the bustle of a busier area this is definitely for you. Lie on the beach, have some drinks and enjoy.

On a side note our ferry back to Trinidad was canceled on New Year's Eve so I advise anyone with ferry tickets to confirm about 6-12 hours before sailing.

We're expats living in Trinidad who needed a weekend getaway! We just returned from a weekend at the Blue Waters Inn (December 8/9) and we had a great time. This is a charming and well maintained yet traditionally Caribbean resort. We loved the beach and warm water, and especially the pier where you could sit in a chair and read. All the rooms have a balcony or patio on the Bay; the beach is shaded by large old sea-grape trees, and as the receptionist showed us to our room, she was worried because the lovely trees block some of the view, but we did not mind that (apparently they'd had some complaints from guests who wanted the trees cut down!!? Sea-grapes ARE part of what makes the beach in the Caribbean!) The middle building was undergoing re decoration, so we were above the bar and restaurant but there were no problems with noise or odors. We loved the bar ambiance and the restaurant was also undergoing some updating. They have both an AC and an open air dining area. Rooms also all have both AC and ceiling fans, and a bright new island decor.
We did not have problems with the staff but we are on Caribbean time ourselves, and we say what we would like or start discussion without expecting the staff to recite!! The very nice barman even apologized, for what I am not sure, when I asked him to make a little variation in a drink. As always in a remote Caribbean place, you ask what they HAVE before you tell them what you'd like. We found all the staff very pleasant; of course we always say hello-and -good morning/afternoon etc., to everyone we meet, which is the Caribbean custom -- a person who walks right by all the staff and then suddenly expects something cannot expect to be greeted gleefully. There are two other small inns nearby in the village and three other nice restaurants, so if you were there for more than a couple of days, there are places to eat and hear music. We took a boat trip with snorkeling, we had flying fish sandwiches -- a favourite of ours from our years in Barbados -- and we would stay again in a flash. Make friends with the macaw, Trini. The small children on the beach were having fun. Kayaks are free. There is steel pan on Friday nights. This is a super little Inn.

We spent a week at the Blue Waters Inn in November 2007. The location is fantastic - rooms, bar and restaurant RIGHT on the beach and the hotel in its own bay. The view out to Goat Island and Little Tobago is great.

Rooms are simple but fine, with fan, AC and en suite facilities.

What really let the hotel down was its staff. With one exception the bar/restaurant staff varied between uninterested and incompetent. Most of our evening meals were messed up (no starter delivered, wrong starter delivered, starter offered after main course(!)), and a similar story with the main dishes - and the restaurant wasn't even busy! The serving staff had no idea what was or wasn't available each evening despite the menu not changing from one day to the next. The one 'special' on the menu one day was meant to come with calamari but had mussels instead; nobody told us about this we just had to find out when it arrived.

So in summary the hotel and location are great, but don't go if anything approaching effective service is on your holiday checklist.

Oh - and when we checked out I found that we had been overcharged by $TT500 - so do insist on checking every receipt to make sure it is both yours and correct rather than trusting the computer print out summary.

My family and I have searched the internet for some time to find a nice hotel in Tobago. We found trip advisor by accident (you do not see this often on German web sites). After browsing through the comments from all the guests, we decided to spent our first four days in a guesthouse close to the airport (no comment, not very nice, but many things to do for my children), and then go for ten days to Blue Waters Inn. The website of the hotel is not very good, it needs much more pictures! The location of the hotel is so very nice, but you cannot see this on their web site.
The rooms are o.k., but they need a little bit of attention. The manager, who speaks German well, told me that the hotel rooms will be renovated next year. This is a good thing and will make the hotel perfect. The beds are very comfortable, the size of the rooms is nice, it is just the bathrooms that look old. The rooms are air-conditioned, the plumbing works very well, our room had a little kitchen (#7). I have seen rooms on other Caribbean Islands (for example: Jolly Beach in Antigua) where the hotel is sold as a four star, and the rooms are a disaster one star! The nicest thing about the rooms in Blue Waters Inn, is that they are right on the beach. This is a true beachfront hotel.
I read the comments about the food prices on the trip advisor.com, but do not agree. We have eaten all over the island, and the prices and quality of the food of the Blue Waters Inn is very good. I do not understand the other comments. The only reason why these comments could be negative is that these people went to eat in many of the cheap 25 TT Dollars food booth, that are all over the island. This is not my taste, and when you compare the food from Coco Reef Hotel and Crown Point Beach Hotel and other hotels and restaurants in Tobago, there is nothing wrong with the food and drink prices in Blue Waters Inn. Try the Beef Gumbo and the Island Crockpot, it is really nice.
The restaurant and the bar are just newly decorated and look very nice. On Friday a steel band played for the guests.
The beach is fantastic, this is really how we imagine the Caribbean Sea, even on the days when it rains and the water gets a little brown from the rain, a few meters away from the beach the water is nice again.
The scuba diving is the best in the Caribbean.
Be careful if you go there with children. If your children like TV, video games and the internet, you will have a real problem. The hotel has one television and one computer. Most of the TV channels are Spanish. Your children will go crazy. If your children love outdoor sports this is great for them. The hotel has free kayaks and the manager also told me that they will have mountain bikes and maybe sailing boats for next summer. The hotel has glass bottom boats and a dive school. To go to the village of Speyside by foot is a long walk up and down the road, you really must like to be in a lonely spot to enjoy the Blue Waters Inn, or rent a car for your holidays. We loved it there and will come back in 2009 to see the hotel again. Thank you to the friendly staff!
Patrick Mogo