Both hotels are side by side on the Dominicus beach strip. The part of the beach in front of the Palace is my favorite spot of the beach. When staying at the Club Dominicus, would walk over to that part, which you can still do. Club Dominicus is a bigger hotel, the Palace is more compact, the hotel was built in one unit, not by separate stages (and different construction types) as the Dominicus. Thus your room will be closer to the dining area and other service areas. At the Dominicus everything is real casual and sprawled out. The Dominicus has beach bohios, apartment rooms, and hotel rooms. My favorite are the beach bohios (they have fans and showers, no tubs or air-conditioning). If you stay at the Palace in January it will be brand new. I don't think it has opened yet. So you will enjoy the pluses, but also will have to deal with being one of the first which means you will be trying out the hotel. Expect the Dominicus Palace to be the more expensive of the two following the introductory period. Check with your travel agent, but I would believe that guests staying at the Palace can also eat at the Club Dominicus restaurants.