We stayed at the Koh Tao Royal Resort in January 2012. Overall I felt that the receptionist was always rude and his English is practically inexistent. The rooms are clean but are old and the bathroom is quite crumby. It is completely over-priced for what it is (and doesn´t even include breakfast!). We booked it as we were afraid of arriving on the island during peak season with no booking but we didn´t have to worry - we subsequently found nicer accomodation on Sairee beach (where everyone wants to be) and it was even cheaper!!!!!!!!!!!
I cannot recommend this place.