I, too, highly recommend the Westin Regina in Los Cabos. The property is just incredible, and there's a shuttle from the hotel into both cities (Cabo San Lucas and San Jose del Cabo), so being outside of the city limits isn't a problem at all.

And the hotel rooms probably have my favorite showers anywhere. You'll know what I mean when you see it.

We stayed there last year on a 50% off award from Starwood hotels. For 1500 Starpoints, you can get a room for half off the rack rate. At half off, we got a rate of around $125 a night for an oceanview room -- it was worth every penny (or peso).