I first stop for one night in Puerta Vallarta and I found a hotel there I am crazy about.  Posada Rio Cuale.  It is in the old part of town and two blocks from the beach.  I think it only has 24 rooms.  They are simple but very clean.  They also have a small pool.  The food?  I don't think you will find better in all of Mexico!  When I was there last it was about $30 a night and there were two of us.   I don't think you can get that at the Boganvilla Hilton!  I found this on the net:
 

"Posada Rio Cuale Hotel - Aquilles Serdan 242. Tel: 2-0914, Fax: 2-1148
25 rooms on 2 stories, some with AC. No TV. Gourmet restaurant, terrace bar, pool patio.
A colonial-style hotel with arched brick windows and wooden shutters, an excellent gourmet restaurant, terrace bar, swimming pool and attentive service. Excellent location downtown, just over the bridge. For a quiet room avoid Av. Vallarta side.
I checked this place out, through we didn’t stay there. It is on the top of my list for our next trip. The pool area was very nice, a great place for the kids to get away from us on their own for a while. The price for a double in 5/02 was $38."

    There were all sorts of little things I didn't know about the first time I spent the night in Yelapa.  For example, there ARE mosquitos there and some invisible biters called, "no see'ms".  Both can be a bit annoying!  Even with the mosquito netting over the beds, those creatures seem to find a way in! Solution:  There is a liquid soap called Dr. Bronners that you can get in a health food store. (The soap is worth it just to read the wonderful label!)  Get the peppermint flavor. Dr. Bronner's motto is "dilute, dilute, dilute!"  So, also get a spray bottle and dilute Dr. Bronner at about 6 to 1.  For some reason, the mosquitos and no see'ms hate it.  I love it! Spray yourself before going to bed.

    Another thing that was a problem to me... I really love my coffee in the morning!  The restaurant there doesn't open until quite awhile after I'VE opened.  I got a cheap little coffee pot, instant coffee (also, instant cider, chocolate, whatever is nice to have) and, at an army/navy store  found this tiny stove and tablets you light for the heat.  All very inexpensive and fits easily in the bottom of a back pack.

    Outside my hut, I found a nice flat stone to sit it on.  Voila!  Morning coffee.  The little tablets cost less than $3 for a box of 24 and one tablet will boil water for a pot of coffee.

    The first time there, I brought some M&M's and some other little goodies for those special moments.  I put them in a drawer in the bedside table... mistake!   In the morning, they were gone with a lot of chewed up paper left behind.  You ARE on the edge of a jungle!  So... the next time, I put them in a bag I hung from the ceiling!

    Bring a flashlight since the power goes off around 9:30.  Of course, candles are more fun and you can get those from the hotel.  What else?  Well, I always bring books and a writing tablet... very seldom do I use either one!  Yelapa (for me) really isn't a place to "DO".  It is a place to "BE".

    Where to stay?  I guess I am a creature of habit.  I always stay at the hotel Lagunita... the only official one there.  The last time I visited, (1996) the huts were around $30 a night and there were two of us.  They may cost more during the season, which I believe is Easter on through Feb.  I always go off season.  There ARE other places to rent from the locals.  So, stay one night at Lagunita and then ask around.  I most always eat at the hotel too.  I have never gotten sick from their water or vegetables.  There are other places to eat along the beach but... I saw some of the owners washing the silver and plates in the river!  My doctor told me there are all kinds of strange and mysterious things in that river that you really don't want in your body!

Here are a couple links...

For the Hotel, click hereLAGUNITA