We have stayed at Timothy Beach Hotel in February 2012 for one week before going to the sister island, Nevis for a second part of our holidays.
It's a lovely budget hotel located in an excellent area - only 15 minutes from the airport and few minutes walk from many restaurants and bars. Our room was small but comfortable, located on the 1st floor, had a partial ocean view and it was cleaned daily. The swimming pool is simple but well maintened and with plenty loungers around it. We had breakfast daily in hotel's restaurant and snacks and drinks in the afternoon/evening in Dock bar - both excellent service and good value for money. From other restaurants I would certainly recommend Bombay Blues & Ciao Restaurante Italiano. We have had an enjoyable stay and would certainly return again.
P.S. Plenty of wildlife to observe - vervet monkeys and moongoose running around hill side of the hotels. Beware of monkeys vendors on the beach - they are running after all tourist and nag them to take a photo with a poor little monkeys with a nappies on.