In November 2006 I paid 800 baht for a nice room with TV and air conditioning. The property is made up of bungalows, although some share common walls, so are actually duplexes. The restaurant had high prices for Thailand, and the food was mediocre. They had apparently left out all spices for fear of things being too spicy for foreigners, but the food ended up tasting bland. Other restaurants and internet services are available on the main road. The room itself was quite nice, but there are too many problems for me to recommend the place to friends. A major drawback is that there is a mosque in front of the hotel with loudspeakers that announce prayer time several times a day (including 6 a.m.). This noise can be heard at other nearby hotels too. They had internet service available at 2 baht per minute, but it never worked. The front desk service was indifferent at best, and at worst, downright rude. There was a customer who had some type of problem with the breakfast voucher, and after several minutes, the manager told them they could leave and stay at another hotel. There could have been some better solution, but this is southern Thailand, so you don't get the service that you get in Bangkok and northwards. One thing about Koh Lanta is that the beach is fairly ugly unless you go far south on the island. It's a muddy rocky mess until the high tide comes in, but it's not nice then either. Better to press on further south if you're looking for a nice beach to relax on. The hotel does have an attractive small pool.

http://www.lantapalace.com/