Having rented various different hotel rooms in the area of Punta del Este in past years, I can only conclude that Redwind B&B is the best bet in terms of its value/price ratio in the high season (first half of January). The apartment in which I stayed was big (some 40 sqm), clean and neat, equipped with a refrigerator (it seems to me that each room has one), crockery and cutlery. WiFi Internet access was available. To relax you can sit on their huge terrace (where breakfast is served) overlooking the garden and pool area, or you can lay down poolside on a sun bed. The hotel is located in (what seems to be) a well-to-do, safe and tranquil residential neighbourhood. The closest beach (Playa Brava), like the Shopping Centre at Roosevelt Ave. and a number of posh restaurants, are a five-minute car drive away. To reach Downtown Punta it will take you fifteen minutes, and you will need half an hour to join the crowds at the trendy beaches of La Barra or Montoya. The location of the hotel is thus very convenient. The fact that you need a car to get around should come as no surprise, given that the Punta del Este area stretches from Punta Ballena some 10 km west of the Punta peninsula to José Ignacio some 30 to 40 km east of the peninsula.
The very best thing to say about the hotel though is the fact that the landlady and her staff are very friendly and helpful and create sort of a family atmosphere. This is a place where you can really feel home!