I've stayed at Villa Iguana a few times, the most recent being one night, this past Saturday! I was there for 10 days in January though and have a pretty full album of pictures of my time at the guesthouse and in Bayahibe posted at
Villa Iguana and Bayahibe, Dominican Republic January, 2008 pictures, photos, and videos, from caribbean on webshots You can skim past the first page of shots which show aerial views from my flight and arrival at the Punta Cana airport.
My favourite accommodation is the one bedroom suite shown in those pictures. "My" room is on the third floor which allows more air to move through the windows than the similar suite on the 2nd floor. Both have a small but accommodating balcony with a view over the street to the east and south and out to sea. The ceiling fan and strategic blind and window opening has had me comfortable in that room, but this weekend I had a nice smaller room with air conditioning. After the day I was having, it was appreciated but I didn't really
need it. That room was quieter and darker than the apartment for a late lie in. I didn't really hear the dogs and roosters at all, and facing west there was no morning sun creeping in.
My friend took the rooftop penthouse in January and you'll see pictures of it in the album too. It is just the bedroom but has a really large bathroom, and then you have the entire floor to yourself including terrace and a small pool. A really grand situation and it falls within your budget. It can accommodate 2 plus 1 people as my friend had (with roll away bed).
The owners of Villa Iguana have some ideas for the future and have acquired the property next door. Indeed there isn't much parking, but that means that you are free to use the streetfront of the house next to VI, to the left when facing the building.
Hotel Bayahibe will offer you a fine stay and is preferred by some for its more traditional motel style, but I like the character of Villa Iguana, and the way you're given keys and come and go like it's your home and not a hotel. I really enjoy Martina at VI, who can provide a ton of info on the area and in particular snorkeling and diving in the area as a diver herself.
Kaki