We fell in love with this super stylish but affordable cabana hotel in laid back San Agustinillo. The thatched roof buildings look tropically rustic from the outside, but the interiors are strkingly modern, with lots of sleek curves and glamorous bathrooms. Powerful ceiling fans keep the rooms cool, and cold drinks are on hand in the mini-fridge. There are just eight rooms here and each is just steps from the ocean and has a private terrace or balcony. It's such a romantic, simple little hotel that we recommend it mostly for couples; but some rooms also have a sofa bed and children would love the proximity to the beach.

Punta Placer has, in our opinion, the most desirable accommodations in town, and it also has our favorite restaurant. Breakfast, lunch and dinner are served here. The resident managers are French, and they add a modern flair to the mostly Mexican cuisine. They also make a mean margarita!

San Agustinillo is our idea of the perfect little beach town; there's a good choice of restaurants and some nice bars, but it's not overcrowded or heavily commercialized. It's more of a family resort than nearby Mazunte, Puerto Angel or Zipolite. We reckon that it has a similar vibe to Tulum, though prices are generally much lower here for both accommodations and dining.

The beach is generally good for swimming, although conditions can sometimes be "red flag" along the bay. This part of the Oaxaca coast, with its palm fringed coves and pretty beaches, is very scenic and there's plenty to see and do nearby (our favorite is the turtle farm in nearby Mazunte). Visit now, before the secret is out!