Hotel el Patio is great if you aren't into the resort-hotel type of deal, as it's nice and quiet and comfortable and has a friendly, home-like atmosphere. You won't find a mini bar or TV in your room, but there are very cheap drinks to be had in the nearby salons/lounges.
A lot of folks have said you NEED a car if you're staying here and while it's definitely helpful, we didn't have one and we had a 6 month old baby. We used buses and taxis when possible, and it was very affordable if a little frustrating sometimes.
The buses are not all that reliable, and Google Maps doesn't have great info on them, and you have to pay by cash. However you can get a taxi into Icod or Garachico for about €5-7 and from there catch a bus to just about anywhere, if you're prepared to sit on a bus for a while.
Otherwise, the staff were incredibly friendly and helpful and would always stop what they were doing to help you plan your day out and things like that. We relied on them heavily to book us taxis and things because the taxi operators didn't always speak English.
All in all a very positive experience. The only negative is the coffee served at breakfast ;) You guys seriously need to upgrade those bean-to-cup machines. The coffee tastes like it came out of a vending machine in a police station. Serve some regular filter coffee as well maybe. Don't ask it for a cappuccino - you'll end up with a weird chocolate drink.