We moved here, as Chez-Maggie (which about 50 yards up the road) was full on the second night we stayed in Morondava. This place is clean and tidy. The airco works (perhaps a little too) well.
Minus points for us:
The people running the hotel were a bit grumpy at times (maybe because our french is not that good and we picked Chez-Maggie first). It doesn't have a particularly good view either, but you only have to walk for a few minutes to be at the beach. It is also not a particularly atmospheric place to 'hang out', maybe because everything was so neat and tidy (think: the atmosphere of an average hotel lobby).
The biggest plus was really the restaurant: the food here was really fantastic.
You will have a good stay here, but if you like a bit more atmosphere and don't mind a slightly less tidy place and food that is not quite as good, I would actually recommend Chez Maggie.
(So our experience is somewhat opposite to Kernot1984). We stayed here in October 2011.