Bus is easy to get to Arrecife and Puerto del Carmen and runs all night (2.60 euros to Carmen)
You can hire a car for 50 euros for a three day period and drive around the island proper, very interesting landscapes and sights to be seen.
Nicest places, for those wishing to avoid sheperds pie and scampi and chips in one of the miriad of "British" pubs, are situated around the old square. Huge steaks and (fairly pricey) tapas.
Nice tapas place on the main road which curves around the outside of the resort.
La Bodeguetta : Newly opened tapas and wine bar. Great to sample a taste of real Canarian food in a resort packed with European focused Steak Houses. Really friendly staff, great wine and great location, just sheltered from the breeze. Located at the southern end of the Los Cucharas beach past the Irish bars (Henneseys etc)
The Chill Out Bar on the first floor along from Dreams is about the only decent bar in the town. More South East Asian in feel than Spanish, but pretty cool and cheap beers.
Everywhere else in Costa Teguise is like something out of "Pheonix Nights", i.e. stuck in 1982. Wall to wall Karaoke and pop tribute acts. Places with the names "The Red Lion" and "The Black Bull" abound, with most showing Coronation Street and Emmerdale for those who wish they were still in their two up, two down in Rotherham.
"Cayote Disco Pub" is about the only place that could reasonably be described as a Nightclub (or disco, "nightclub" seems to be widely understood as a brothel in Spain - which would be more interesting, frankly), but it's still pretty ropey.
All rather depressing, really.
There are a number of large 4-5 star hotels.