We stayed here twice. Once for one night before going to Punta del Estes, where we were scheduled to stay 5 nights. We left Punta after two nights, and returned to the peace and tranquility of Colonia and the Sheraton for our last three days in Uruguay.
The hotel is beautiful, we were upgraded to a two room suite the second stay, which was magnificent.
The front desk staff and bell boys are fantastic, especially Christian.
Great pool area, nice looking golf course, located in a quiet, safe area only three miles from downtown, which is equally as quiet and safe.
The hotel's only fault is a weak, non existent restaurant manager, and there are a number of issues with the restaurant, which could all be easily solved with better management.
If you are visiting Argentina, and want to include Uruguay, as we did by flying in and then hiring a car and driving from Colonia to Montevideo and then Punta, DON'T!
Take the express Buquebus (as opposed to the slow boat) from downtown Buenos Aires (I believe it takes less than an hour) to Colonia. Take a $6 taxi to the Sheraton and spend two, three or four days here, with visits to the old town and it's restaurants and shopping.
We found nothing in Montevideo or Punta that enhanced our trip, spend the extra time in Argentina, which has far more to offer, and leave Punta for the rich upper class from Argentina who are seeking a summer beach vacation in a rental apartment. (Punta is a tired, jaded version of the Ft Lauderdale Spring Break of yesteryear.)

We spent XMAS Eve at the Sheraton in Colonia and we recommend this property. We attended their XMAS Eve show, which featured an Argentine band that played American rockabilly music and they did an outstanding job of it (their mimicking of CCR's John Fogerty and artists of this genre of music was uncanny). As for the hotel: the food is good, and the rooms are new and well maintained. The hotel has a curved pool, not heated as best as I could tell, and an outdoor hot tub. A spa is adjacent to the property. The spa is very nice and contains an indoor heated pool which extends out of the hotel exterior, serving as a second outdoor hot tub. We saw a manicured golf course, but as we don't play the game, I cannot rate it. The town of Colonia is about 3 miles away and offers a beautiful river-view vista and tree-lined streets filled with Spanish colonial-style structures and stores. A couple of things for the non-South American traveler to remember: Numero Uno, Colonia is located one-hour away from Argentina and accordingly, most visitors to Colonia hail from this country (some Argentines actually live in Uruguay and commute from here to their country's capital). The rest are tourists who are visiting Buenos Aires and maybe Punta del Este, and are traveling to Colonia to see "something different." Don't expect spicy food - it's not on the menue in this part of the world. Numero Dos: The Sheraton has a spa, but children are not discouraged from staying here as they might be at a similar property in the USA or Europe, where spa guests usually don't take the kids. I think it would be unthinkable for family-minded Latins to visit a property like the Sheraton sans the wife and kids. Don't stay here (or in any South American spa) if you want an absolutely quiet, kid-free experience. The children-guests were boisterous but friendly and behaved; not the sort to object or make you feel uncomfortable if you asked them to keep the noise down a bit. Numero Tres: the staff is polite and mostly bilingual, and they do their job. But are not dedicated to keeping you happy. Getting something done might take longer than you would otherwise expect. For example: we reserved two seats at the XMAS Eve event at check-in, through the concierge in the afternoon. When it came time to attend the event a few hours later, the staff controlling entry to the ballroom told us "everything was sold out," and that we should have booked our tickets days earlier, as part of a package, rather than through the concierge. My wife & I stood our ground, rejecting two seats at an impromptu table placed next to the amplifiers, and held out until we were given seats at a well-located table. Likewise, services like a request for your bill or coffee at breakfast can take the staff a half-hour to comply. But we are used to this and we recognize that no location is perfect. We recommend the Sheraton in Colonia, especially for Buenos Aires-based tourists who want to see a slice of small town life in a bucolic setting.

Sheraton Colonia was a welcome respite from Buenos Aires.

The town of Colonia is an hour ferry ride across the Rio de la Plata and I couldn't see a thing on the ferry due to the low fog layer. It made me think about how these huge ferry accidents can occur.

It cost $6 US to take a taxi from the ferry terminal a few miles to the hotel.

The hotel was nearly empty of guests on a Wednesday night in June. I was staying on a Starwood Preferred Guest Cash & Points stay for 2,800 points and $45. This was a great deal considering a paid room was about $180 after tax.

My room was a full two room suite. The master bedroom had a large shower and tub and double sink. There was a flat screen wall mounted TV and an office space. Lots of stone decor in the bathroom and office area. A large patio provided wonderful views of the golf course, outdoor pools, and Rio de la Plata was about 100 meters away. At night it was nice to lay in bed with the curtains open and look at the navigation lights on the river.

The second room had a leather couch, chair, dining table, kitchen pantry, and bathroom. Both rooms had walk-in closets.

The hotel looks new and i believe it opened around 2002. There was a conference center on one side of the hotel with art gallery in the hall. The restaurant food was delicious and the prices were low by American standards which is not always the case in South American upscale hotels. Service was attentive and every need I had was quickly attended to throughout the stay. I honestly think there were more hotel staff than guests during my visit.

I did not use the spa services, but I did use the indoor/outdoor pool accessed located in the spa area. It was absolutely incredible to be floating outside in a heated pool, listening to all the song birds, as a cold breeze passed across my head.

I was enchanted with the variety of birds in the vicinity of the hotel. The area around the hotel is currently undergoing construction of a major housing development around the golf course. I was glad I visited when I did. The development might improve the overall area around the hotel or might not. The hotel is a little ways out of town, a bit far for a walk, and there are no other places to eat aside from the hotel.

The Sheraton Colonia Spa Resort was the highlight of the hotel stays on my South American trip and I heartily recommend this property to anyone in Buenos Aires who wants a change of scene.

Tranquil location...few miles from downtown Colonia. Having left Monteviedo on the beginning of a 2500 km. drive, arriving tired, going up the incorrect driveway, (not clearly marked) we were greeted by a delightful bell man. Upon check in, again, great staff in Karona...with explanation of the hotel. The view onto the river Rio de la Plata across to Buenos Aries, fantastic.

Onward to dinner and some of the worst service in any restaurant, given by HUGO. He left us to set for 45 minutes. (we did see him the next day downtown working at another restaurant) The food was questionable. Shall I add that this is an upscale restaurant. The children talking very loudly, walking very fast, and playing in the restaurant.... as there parents sat, watched and drank! The old town of Colonia is really delightful with some great restaurants, of all price category. Old town, El Torreon is very good and overlooking the river.

This is a GOLF and SPA RESORT not a children's play ground. I was mistaken, when the next day we are at the pools... spacious pool, bar service, and more children running about, not walking and nor disciplined. Even with the "babysitting" service that is available, and used the children were still allowed to misbehave. (for those of you questing... should children be allowed to play. Certainly, yet at the same time with the cost of a GOLF and SPA hotel/resort.... shouldn't adults be allowed to relax?)

ENOUGH, since we were there for a couple of days...decided to go to the spa. What I thought would be a relaxing massage, only to listen to an exercise class in the near by pool. The crowing glory, after my massage...while checking out, was when the once again, children came into the spa area, unaccompanied by an adult. Absolutely no reason for them to be there.

Breakfast, a buffet, was good, even though NOT all items were available until over 1 hour after they opened the doors for service. ... These children ranged in age from 3 to 10. Staff were disappointed, in the unruly children, also......yet what can they really do?

Driving gave us an advantage to explore the charming town.

This area is definitely worth a trip from Montevideo or Buenos Aires!