I would not stay at the Punta Jabillo..I have stayed there before and I was ill for a month afterwards and I was not the only one. Truly dreadful experience and it is such a shame because it is set in an ideal location right on the sea front.
That said, it has changed hands since then but from what I can gather nothing has been spent on re-furb or dragging the place to what even remotely can be classed as a hotel. It also depends what you are looking for. If you want cheap..then go there..but beware..you get what you pay for.
What is your budget? What facilities do you want? How close do you want to be to the beach? Do you like nightlife? There are so many factors to consider..
Lanzarote is a lovely place to stay..my favourite out of all the Canary Islands. I am sure wherever you go..you will love it.