We were at Club O beach in May and had an encounter with some fellows down by Papagayo. The people at Perch Lite said its a very popular area for men who want to "share" their wives as well as gay men (their words not mine). We wanted to see the damage past the old restaurant and were approached by a young man who was overly friendly and began to get an erection as we spoke. We went back to the beach quickly and stayed on the beachside of the restaurant the rest of the week.
We had a wonderful time and had no issues whatsoever as long as we stayed away from that area. We'll be going back, but will certainly stay in the open beach area. It's pretty much like it used to be, and Cedric does a great job of policing the area on the beach.