For me a villa everytime. The best part for me is hiring dj kit and speakers and having our own pool parties before going out to tear it up at night. We used http://www.IbizaPA.com - very reasonable - delivered the kit and set it up. Also you can have friends come and go over the period of your stay and really share the cost. We paid 250 euros each for 1 week in July for a villa near Jesus. Imagine finding a half decent hotel for 250 euros a night in July let alone 1 week!