Hotel Sipan is beautifully located in Sipanska Luka, in a small bay at the north side of Sipan island. It can be reached easily from Dubrovnik by ferry (4 times a day in summer) and bus (connecting harbour and hotel). The hotel is rather modern, rooms were OK, clean and large enough - no great luxuries or high-class service though. Breakfast buffet was good (included), in addition there was an evening buffet offered for 160 Kuna. There's a small beach 500 meters from the hotel and, a little further, a number of tiny, almost private spots to jump into the sea. The water in the bay was amazingly clean and really great for swimming. In Sipanska Luka, you find three restaurants, two little shops, a post office and three pubs - mostly, life is on the quiet side, but boats arrive in the evening and add some life to the place. For kids, there were offers for entertainment which seemed excellent (boat excursions, guided tours, photography).
Negative: during our stay, the air condition was not working in half of the hotel's rooms.