I stayed at this hotel for one night last October with my wife because of some booking blunder causing my wife's family to mistakenly putting an earlier check out date for us at Pacific Park Hotel nearby, and we couldn't amend it because Pacific was fully booked on that day.
Well the good thing about this hotel would be the view. It's beach side position is a winner! Not to mention also the hotel rate is actually cheap (we've only paid roughly AUD43 for a sea view room), and the staff were friendly and quite helpful. I've also read elsewhere that foreigner might be charged a higher room rate by them, so it might be useful for you to have a local to help you to call the hotel first and find out what the rate is, and if you agree, come and check in.
However, this hotel had seen its glory days. It's an old hotel with un-airconditioned lobby, relatively dark during the night, and with one old elevator. The grey floor carpet is old and run down, have musty smell, and we've seen two ladies manually swept the carpet with traditional spiky brooms. There was also one bloke who seems to loiter around the floor, which is quite concerning for us, but turns out he is actually painting the wall.
The room that we originally got had a broken down air conditioner, so they gave us another room with a better aircon. Turns out also that the bathroom's exhaust system for the whole hotel does not work, so when you go to toilet, you better flush the toilet straight away once you've dropped your "bomb"! Oh yea, you'll also need to hold the flusher until it's completely flushed!
I've also found one dead small cockroach in the bathroom, and the room's wooden floor is also not that clean, the big wardrobe is so old and smelly when you open it, also the overall room is a bit dusty (on the floor, bed etc).
Our breakfast on the next morning is also terrible. It wasn't a buffet breakfast and the food weren't seems to be fresh.
To sum it up, i wouldn't stay in this hotel if i didn't have to.... It was the cheapest available hotel for only one night before we continued our trip to Koh Samed.