I don't know about the hotel, I think it's the old colonial house one, isn't it? I should think it ought to be good...
Anyway, Es Castell is a lovely resort, it's got 2 or 3 little inlet/harbours, with lots of boats and restaurants, so it's great to wander round, especially in the evenings. You can see the big ships heading to/from Mahon. It's a proper little town too, not just a resort, so you've got the local shops and town square.
You can get boat trips from the harbour, and also the local bus into Mahon. You can walk around the old fort at the end of the headland, or down to Cala de San Esteve which is very pretty.
The only downside is that it hasn't got much of a beach.