In reply to alan1961: Puerto Pollensa, Hotel Duva, hire from Probikehire. Nuff said.
Seriously, the Duva is great value (we're paying about €50 a head per night for half board in a one bed apartment). Secure bike storage, tools, track pump etc to borrow.
Probikehire can help with bike hire (obviously!) but also routes and they do a guided ride Tuesdays and Thursdays.
Ride-wise there's some good ideas here, all but one of which start in Puerto Pollensa:
http://www.globalspokes.com/Mallorca/mallorca-routes.htm
The beauty of Pollensa is you can ride down the coast where it's flat, or head up into the mountains. The roads are very quiet by UK standards and drivers are much more considerate. On the busier roads (eg the coast road through Alcudia and Ca'an Picafort) there are good cycle lanes.
Brilliant place - happy to share a few GPX tracks if it'd help!