Huge Swimming Pool, and kiddie pool.
The hotel staff caters to you by the pool. Bar and taco stand right in pool area. Order food and relax with cocktail while tanning by the pool! about 2 short blocks from the beach and other attractions along the way. Plenty of souvenir stands, restaurants, beach bars, and people (Lots of people during spring break!). There are a couple of night clubs on the strip. Not far from the hotel at all. Keep caution of red ants-they're everywhere.
ATV riding for 20 dollars an hour, and banana boat riding for 4 dollars an hour.
You'll have the time of your life!

I stayed at Hacienda Don Jesus last week. I have traveled to San Felipe quite a bit over the years and had the opportunity to stay somewhere other than the standard Cortez, La Mansion, Red lobster,etc. Wow-was I surprised at how clean it was, and the pool was great. The parking lot had a full time guard, which is important if you have your off-road machines along. The town was quiet, so not much activity at the hotel. The location is great, just 2 blocks to the beach and Malecon.

Enjoyed a GREAT dinner at El Nido and lunch at Rosita-also very good.

I spent one week in San Felipe in July 2007 with my wife and my daughter (coming from San Diego where my daughter is student). I use to travel a lot (I am french and my wife brazilian) and to follow tripadvisor comments.

We spent the 2 first nights in El Cortez (100$:night). Room OK (large & clean) but bathroom needs a refurbishment, small pool & nice
restaurant on the beach but no internet. Looking around in the city we visited all the hotels and finally moved to Hacienda Don Jesus (60$/night and 85 during week ends). Located 2 blocks from the city beach (3 minutes by foot), room clean but smaller than El Cortez (bathroom just retrofited); nice pool (the best in SF except Riviera)
and WiFi in the room.

Best restaurants in SF: Suy (downtown, Avenida Mar de Cortez, one block from Malecon), Bajamar on Malecon & El Nido.