Unless you've come to Montezuma to party all night every night, it's really not a great idea to stay in a hotel in the centre of town. Due to certain late night bars, the centre of town is crazy noisy. Unless you're the type who sleeps through the end of the world, you're going to struggle to get some decent shuteye here. Best stay just a little out of town - an easy walk to the restaurants, bars and internet cafes, but where you can get a bit of that peace and quiet that you came to Montezuma for.
If you're on a budget, the best place to lay your weary head is at the lovely Luna Llena backpackers hostel. It's just 200 metres up the hill from Montezuma village, about a 5 minute walk to and from town. It's pretty tranquil (except for the troupe of howler monkeys that swing in the surrounding forest), and there are good glimpses of the coast and horizon. The hostel usually attracts a nice crowd of considerate, easygoing travellers and there's a large balcony for hanging out on, a TV lounge and two kitchens. It's run by a sweet German woman who has done the place up with lots of sky blue paint and cute artistic touches. Most of the rooms are dormitory -style (US$10 a night), but there's also three clean private rooms. The rooms are positioned in the forest with trails leading between all the rooms and communal bathrooms.
Now, if you're in Montezuma on a honeymoon or with a little bit more cash to burn, it's worth splashing out on the oceanfront Ylang Ylang Beach Resort. It's a 15 minute walk from the village along the beach. Double rooms start at $135 a night and go up to $315 (depending on the season and the room) and the rate includes breakfast and a candlelit dinner. All the cabins/jungalows here have outdoor showers and balconies with ocean views. The swimming pool has a little waterfall and there's yoga classes every morning in a beachfront cabina.