I consider Puerto Escondido (pwer-toe es-con-dee-do) the best overall beach value in Mexico, from hotels to dining. Although it used to be known only for its ranking as one of the world's top surf sites, today it's broadening its appeal. ...awesome dining values, and some of the best coffee shops in Mexico. ... The young and very aware crowd that comes here measures time by the tides, and the pace is relaxed.
The location of "Puerto," as the locals call it, makes it an ideal jumping-off point for ecological explorations of neighboring jungle and estuary sanctuaries, as well as indigenous mountain settlements. Increasingly, it attracts those seeking both spiritual and physical renewal, with abundant massage and bodywork services, yoga classes, and exceptional and varied healthful dining options--not to mention seaside tranquility.
People come from the United States, Canada, and Europe to stay for weeks and even months--easily and inexpensively. Ex-pats have migrated here from Los Cabos, Acapulco, and Puerto Vallarta seeking what originally attracted them to their former homes--stellar beaches, friendly locals, and low prices. Added pleasures include an absence of beach vendors and time-share sales, an abundance of English speakers, and terrific, inexpensive dining and nightlife.
This is a real place, not a produced resort. A significant number of visitors are European travelers, and it's common to hear a variety of languages on the beach and in the bars.
It's been dismissed as a colony of former hippies and settled backpackers, but it's so much more. I have a theory that those who favor "Puerto" are just trying to keep the place true to its name ("escondido" means "hidden") and undiscovered by tourists. Don't let them trick you--visit, and soon, before it, too, changes.
Source: Frommer's Mexico 2006