Hi Andy
Have only just signed up to your community - I went to Bulgaria last month and a wonderful time. The hotel is excellant, food plently, like wise the drinks as its all inclusive. I had a room on the 2nd floor overlooking the swimming pool and sea (although this was partically blocked by trees. I believe if you have a room on a higher floor the view of the sea and bay is much clearer.
You are told you can drink the tap water, I would recommend you don't as this has a peculiar taste, the hotel does have a water point near the bar in the reception area.
I bought a litre bottle of water from the supermarket for about 50p (l lev),approx half way on down the road from the hotel, on the left handside on the way to Old Nessabar.
To get to the Old Town of Nessabar come out of the hotel, turn right and keep walking, it takes about half an hour, depending on how far you walk. There are taxi's outside the hotel but is is best if 3 or 4 you use one, and negotiate the price. As it was near the end of the season, 3 of us managed to get get a price of 6lev (the bus into town is 2lev person) this goes from just outside then the hotel.
I hope this information is of use to you and enjoy your time in Bulgaria