This was a wonderful hotel in the late 60s and early 70s when we enjoyed several great stays. Architecturally it is a gem. During our last visit the rooms were so-so and the place reflected the turmoil Central America endured these past several decades. If you are headed in the direction of Nicaragua, there are several other options just a few miles further along on CA-1. During our recent stay, there was no water, and the desk had not advised us of this when we checked in.
We might have hit the place while the stars were out of alignment. Considering the potential of this hotel and given it's former stature, you might consider it, but check the conditions first.