I arrived at the Dharma Beach Hotel to find that the room I had booked was not available. The manager told me he had advised hotels.com to cancel the booking, but they had not done this, so I received no communication that there were any issues with my reservation. On this particular night (new years eve) the hotel was totally booked out, as was every other hotel in Montanita. The manager was apologetic about the situation, and organized me to stay in a room not normally used for guests at a nearby hotel (which unfortunately not nearly as good as what I had booked at Dharma). He also gave my friends and I a free dinner. It seems that hotels.com was at fault, and the manager did what he could to resolve the situation.