I just wanted to second whoever said the Algarb Hotel... we got an all-inclusive deal there that was pretty cheap for Ibiza standards in Ibiza. Food was decent... we never had a problem finding something that we liked, and it was really nice being able to go up to the bar anytime that it was open. We did most of our pregaming at the hotel, then would go elsewhere for day beach parties or out.

Another really good thing is that it's super close to the airport.. which means cheaper cab fare, and if you're anything like my friends and I and tend to sleep through your alarm clocks.. you'll be able to make it to your flight if you wake up an hour and 15 mins before it leaves!

Have fun in Ibiza!!!!!! I'm super jealous!!!