To get the FULL feeling of the Merengue festival (on the Malecon) I would choose either the Puerto Plata Beach Resort & Casino apartments or maybe ApartHotel, both situated on the Malecon (US $27 & US $25 respectively). PoP Beach resort has a good sized swimming pool & a beach just across the road whereas ApartHotel Lomar will refer you to the same beach - just 3 minutes walk up the road!!
If you want more info, drop me an e-mail. It may be adviseable to book reasonably early as both might get busy for this festival.
Regards - Grahame.
