It is called El Terral.
It is perched high on the hill overlooking Manzanillo Bay and is completely open to the night air. As can be seen, it is colourfully decorated and the view is wonderful.
The menu is limited, only four entrees, but they were all very good. Although they call it a "Mexican" restaurant, it was more Mexican in the sense of using Mexican ingredients than in serving what we think of as Mexican dishes such as burritos and tacos. We found the service here to be the best of the restaurants at Las Hadas and it was our favourite restaurant in terms of a combination of ambience and quality of food.