Cabo San Lucas is in a beautiful setting with lovely beaches,
although the quality of the setting is deteriorating with the
exponential growth of this town as an "americanized" resort
center. Some nice hotels are the Hacienda and the Finisterra
(both expensive) - the Hacienda is on the beach on the Gulf
side, while the Finisterra straddles the rocky shoulder which
terminates the Baja peninsula.
A less expensive hotel in town (not on a beach) is the Mar de
Cortez. There are several other smaller inexpensive hotels in
the town area. Right on the inner harbor is a new hotel which
has ruined the view for many. I assume that it is expensive,
although I don't know anyone who has stayed there - the name is
"Plaza Las Glorias" - it has no beach access.
Between San Lucas and San José are many other resortish
hotels (it would be difficult to reach the town areas except by taxi).
In July of '95 I stopped briefly at the Westin Regina Resort
Hotel. This is a spectacular piece of architecture in an
equally spectacular location. Worth a look if you are passing
by - or a stay if this sort of place suits you.
When in Cabo San Lucas, I have enjoyed breakfast at the The
Galleon (on the inner harbor). Lunch or dinner at the Las Palmas on the beach
is excellent. For that very special dining experience, in
a restaurant with priceless menus (i.e., no prices shown on some or all of
the menus), try Alfonso's. I was there once when someone else was
(Note: In July '95, as I was driving past, it appeared that the
name may have been changed, but it remains a restaurant.)
A favorite beach at Cabo San Lucas is "Lover's Beach," located
out on the set of rocks stretching to the end of the peninsula. It is
most accessible by boat. You should be able to bargain with a panga
driver for a ride out there with a pick-up scheduled for a later time
(a "panga" is the basic outboard driven boat in that area).
Another possibility is to rent a boat (power or sail) and to take it out
there yourself. The beach straddles the point of land and lies on
both the Pacific side and the Gulf side.