Palmera Dorada Hotel was great. Very clean place and staff is very helpful. The food was phenomenal. I had dinner twice there and the food was like eating at a five star restaurant, It was surprisingly good.
The hotel is a 10 min walk to the boats that take you across the lake for town hopping. Lots and lots of places to eat, located in the Heart of Santiago, Atitlan. I would definitely make reservations here again in the future.
For travelers with rental vehicles, I would say be weary of tight spaces. I had a small car so I had no issues weaving in and out of the streets. Big SUV's and trucks will probably have a harder time getting around.
There is plenty to see and plenty to do if you decide not to cross the lake. A few blocks from the hotel is a market that offers everything you want at very affordable rates as well as plenty of small food stands that offer the best of Guatemalan street foods.
I was very happy with my stay and couldn't have picked a better place.