They are converting the 2nd floor beachfront rooms into one giant master junior suite/honeymoon suite. The are renovating the room that overlooks the pool but they are not taking out the pool or that room.
The new restaurant is going to be in the gift shop area behind the beachfront room.
Here is what they announced
Exciting News!!!
Coco La Palm, Negril has announced a start date of May 15, 2014 for upgrading of standard rooms. Slated for completion by Nov. 15, 2014 the new... phase will include 26 new rooms including standard and superior honeymoon suite as well as a indoor restaurant!
All current standard room bookings will be upgraded automatically.
The work area will be entirely closed but there will be some level of noise from 9 am to 5 pm only.