We stayed there in Jan. 06, and were very worried after reading past reviews. When we were there, the whole place looked like it was just remodeled. The room was great, and included a mini frdige and a microwave. The pool was small but clean, and there weren't any bed bugs while we were there. They give you beach towels, but make sure you don't lose them. The on site restaurant is very convenient for breakfast and inexpensive by island standards.
The shuttle to Xanadu beach runs infrequently, and the beach itself is deserted (though once they fix the hotels on it I'm sure it will be busier). To save money on taxis, take the public buses. The are lots of stops (the Post Office is the closest stop to the hotel, about a 5 minute walk), and it costs $1 per person. I think they stop running at 7 or 8.
Port Lucaya was where most of the tourist stuff is, and is about 15 minutes away. The food is very expensive (15-?), but drinks were farily standard (6-10).
Overall, the hotel is isolated, but if money is a concern, you can stay there and take the buses where ever you want to go and still have a great trip.
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