We had gone down to Mexico for a wedding. After the wedding we were going to stay with family and friends for a couple of days at or very near the Villa Mexicana. When we arrived we found that the hotel was overbooked and they offered to put us up in their other hotel, Hotel Irma. They did offer to upgrade us to ocean view (we could see a bit of it from our room), include breakfast, and transport us between the hotels at their expense. The cost between the two hotels (including the upgrades) was pretty much a wash. However, being that far away from our family and friends took all the spontaneity of our short stay there and the inconvenience and time wasted at check-in and travelling between the two hotels left us very bitter. The only reason I didn't give a 1 star rating was because the staff at breakfast were very nice.
As a side note, one of the couples we were with did actually get a room at the Villa Mexicana. However, they had arranged for early check-in but were kept waiting at the reception area for 3 hours before they got their room. I understand that sometimes there are unforeseen problems, but the problems we encountered were made by the hotel.