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.