We booked a resort called "Sanman Beach Resort" in Alibag which is a little away from main town right on Varsoli beach. The resort has a sister restaurant in main town which I had visited 4-5 years back and had liked it very much. The only lunch I had there was still reminiscent in my memory and relishing their seafood delicacies was one more reason for me to tilt towards Alibag. The resort is quite reasonable with AC deluxe rooms at Rs. 2600 per night. They also have cottage accommodation at Rs 2200 per night and we stayed in both over two days.