Once a quiet town with a few hostels on the beach, Palomino is nowadays invaded by hundreds of tourists. I agree there are a bunch of great hotels in Palomino, and it’s a cool place to meet other fellow travelers.
However, Palomino can be a bit boring. There is no party going on during the week, and there is not much to do except tubing and walking on the beach. You can’t even swim as the currents as too strong.
If you’re keen to stay in a fishing town, I recommend you Dibulla. It’s a hidden paradise we’ve visited during our last expedition on the Caribbean Coast.