Location
If you want to be in the centre of town and step out into the action of Ibiza's nightlife then you'll probably want to base yourself in San Antonio. There's plenty of hotels in San An but as a built up urban area, fewer quality holiday villas. To find the best Ibiza villas you need to look on the fringes of town, the most exciting and spacious properties are scattered around the tiny villages which outlay the main holiday resorts like San Antonio, Ibiza town and Es Cana.
If you're visiting Ibiza for the nightlife, don't rule out staying out of town. Ibiza is a tiny island and you're rarely more than a 10 euro cab ride or short drive in a rental car from anywhere, including the best clubs and bars, most of which aren't actually located in the centre but are spread across the island.
Price
Hotels typically offer cheaper rooms than villas, that's because you rent just a room, not a whole house. However when you build in the additional costs of living in a hotel, stuff you wouldn't spend out on when living at home the true cost is probably much luxury villas Ibiza greater. Food, drinks, entertainment, day trips all cost money. When you rent a villa for your Ibiza holiday many of these expenses are reduced. For example you can cook your own meals at a fraction of the price of eating out at restaurants.
If you're looking for really cheap, last minute holidays to Ibiza, hotels are your only real option. If however you're spending out on a mid priced hotel based package holiday it's well worth comparing the relative price against a villa rental instead.
Facilities
With a hotel you can expect use of the communal swimming pool. Some hotels in Ibiza will have games areas for kids, volleyball or 5 a side football pitches. Depending on the board basis the hotel caters for you may also have a bar an restaurant within your hotel.
With a villa there's no restaurant obviously, but you will have your own kitchen an you can stock your own bar at the supermarket at a fraction of the cost of a hotel bar. Most Ibiza villas also have private swimming pools, numerous living areas, BBQ, indoor and outdoor dining areas.
The experience
Holidays are all about having a good experience, a better time than you'd have at home. When you pay handsomely for your holiday you should expect a pleasant experience at your accommodation. Ibiza hotels have an excellent reputation and the vast majority of holidaymakers leave having had a great experience. But hotel holidays by their nature can be stressful, particularly for families with young children or big groups. Your plans have to account for the hundreds of other guests in the hotel with you meaning you might not always get a sun lounger or you might have to queue at the bar! Not the end of the world but these are the little stresses which may be eliminated by renting a villa instead of a hotel room.
Villa holidays are stress free as you have a lot more privacy and freedom to make your own plans and enjoy your time in Ibiza. What you're not going to get with a private villa is the sort of experience a clubbing holiday orientated hotel can offer where you may meet people and make new friends at the hotel, go on organized tours and parties and generally get involved in hotel life. If this is what your Ibiza holiday is all about then a hotel may still be the best option for you.