We stayed at the Fiesta Banana for 2 nights. I enjoyed the stay. The hotel and the room were clean and the staff were friendly. I liked where it was located, on the end of the 5th avenue. We had a room facing the street and there was quite some noise during the night, especially coming from the Italian restaurant right besides the hotel. I think this is a great place if you can get a room at the back of the hotel, further away from the street.
The breakfast were toasts with butter and jam, orange juice. It was little but enough to start the day.

We stayed at Aventura Mexicana 5 nights previous to our stay at Fiesta Banana. It's about 4 blocks away and similarly priced. The difference was astounding. Fiesta Banana is in a decent location for beach time, located at the end of the famous 5th Avenue. The room however, was pretty bad. You have to use a special key to access the air conditioning. We were supposed to have a "balcony", which I guess meant the walking area outside of our room that looked out on other rooms? They did plop two white plastic chairs out there. If they advertise a pool beware. There is a nasty tiny little pool or hot tub looking thing that is essentially inside near the stairs. We ran away for the included "continental breakfast". There was a loaf of cheap Bimbos bread tossed out there with a woman sitting to pour orange juice. The room had no television, no telephone and one window that looked out on the other rooms. The bathroom had a tiny window permanently open that showed icky pipes and a building about a foot away from the window. You can't flush toilet paper. You have to pay a deposit to get beach towels or use a safe deposit box (both were free and included at Aventura Mexicana). We paid about $120 per night for this place after taxes. You can definitely do better for the money!

Stayed at Banana for eight nights. Greart room with balcony looking down to water. Five minute walk to beach club and with 50 % discount, two chairs were 20 pecsos. Fifteen minute walk to Mega or Walmart to shop for food. If you are a light sleeper, ask for room in rear. New restuarant opened 11/29 where they used to serve breakfast. Don't know how noisey it might beat night. Would recomend this hotel highly.

We (adult couple and 5 yo son) only needed an inexpensive place for 4 nights as we were attending a wedding in Playa del Carmen then moving on for a weeks stay at an AI in Playacar. I surfed all around, finding prices from $30/night up to $200/night. Proximity to the beach was not important for us but we needed to be near Fifth Ave (the main drag for pedestrians).
I booked Hotel Fiesta Banana online with some Cancun reservation system. Full payment was charged at time of booking. We paid $45/night which we found to be a great deal on a small family style hotel with friendly service. I sent them an email inquiring about parking as we had rented a car (from Europcar - an okay experience). They promptly answered that the hotel was in a quiet neighborhood with free parking. We never had trouble finding parking (for our car the size of a hamster) right at the entrance to the hotel.
We arrived after dark and had trouble finding the place as the streets are very dark and not well marked. After doing a few circles we found the place, right on the NW corner of 5th ave/32 street, and we had probably passed it a few times as the trees and greenery somewhat obscure the entrance. The gal at the front desk was very friendly and helpful. I showed her my reservation confirmation and filled out a very brief check in form. She found us a 'bellman" who carried our heavy and bountiful luggage up three flights to a charming room.
As others have described, the hotel is built around a tiny courtyard which contains a hot tub sized pool. Nice wrought iron railing, tiled floors and Mexican style furniture. Spotlessly clean (we found none of the aforementioned ants) and always someone at work cleaning the floors or furniture. Nice airconditioner - you use a key that is on the same ring as your room key to turn it on. Ceiling fan. On the second floor is a very nice living area with couches and chairs. We enjoyed our lunch there one day. That's where the always full water dispenser is located as well. So welcome! Free wireless internet and we had no problem with service whether in our room, out on the balcony or in the living area. Simply decorated rooms with crisp whitewashed walls and nice bed linens. Skimpy towels and they only gave us 2. No washcloths. I suppose I could have asked for more just never thought to.
Our room was very quiet, on the third floor, I think #306 or #307. No street noise and the balcony over the tiny courtyard.
The housekeepers didn't seem to speak any English but the front desk person always did. We never got in any later than 11pm but there was always someone at the desk. We left $1-2USD a day for the housekeeper. The standard fun towel creations left on the beds.
Safe neighborhood even at night. Right at the N entrance to 5th ave pedestrian mall. Shopping close at hand. I bought a lovely painted lavabo (bathroom sink) for $39USD at the store in the next block from the hotel.
Checkout was a breeze. We said, "We're checking out" and they said, "Thank you, bye!" after helping again with the bags.
There is a restaurant attached to the hotel. I believe you can choose a bed and breakfast option for extra $. We did not do this but ate breakfast one morning at the restuarant. Simple fare for a decent price. Open air and a nice corner location to watch the action.
This was very good lodging for the price. A great choice if you want to be near the action of 5th Ave.