My family of 4 stayed at this hotel for 2 nights (I will say nights only), as you probably won't want to spend any of your waking hours there, on 12/31/04 and 01/01/05.
My 1st impression was the rooms are very small and dingy, there were alot of small bugs on everything. Don't get me wrong, my wife and I have been going to Mexico for years (this was probably our 14th trip), we had rented a villa down the coast at Puerto Morelos and needed a place to stay for a couple of nights. Becuase it was New Years, everything in town was booked, the staff was friendly enough, but not overly helpful, they could have let us know in advance they kept all the tv remotes behind the front desk.
After the 1st night, we woke up with bug bites all over our bodies from the beds, it was worse the 2nd night. We couldn't get out of this place fast enough, I can see why it wasn't booked fully on New Years.
The bathrooms were dirty and we didn't want to chance taking a shower in them.
This hotel was rated 3 stars, I don't know where that rating came from, as there is no way this hotel is anywhere near 3 star.

Stayed here for a week in July '04. Can't fault it for the price! It was basic (had 2 double beds, shower, toilet) but was all we needed and the air con was superb!! Definitely recommend this for those on a budget. Plus the location of the hotel is in downtown, so you get to experience the 'real' Cancun with the locals (who are very friendly) and cheap beer from the supermarket (15p/bottle of Corona!!) Sorted!!

I went with a friend to Cancun for spring break, and we stayed at this hotel. I think that was the best decision I have ever made. It was great. All of the people that worked there were so friendly and accomodating. We have no complaints, and whenever we go to Cancun, this is the only place that we will stay. It has that "Cheers" feel...by day 2 or 3, everybody knows your name. I heard that all the rest of the hotels in the hotel zone were over priced, you have to pay to have guests, and the service is nowhere near the service we received at Hotel Batab. It is about 10-15 min from the hotel zone, but a cab will take you there for $5 - or the bus for $.30 each. It is well worth it.
Oh, and really good rates.