This hotel is fine for a short stay, but there are better options on the island. The staff were kind and friendly, and a convenient minimart downstairs is great for grabbing a drink to catch sunsets by the water. Note: there is no beach directly in front of the hotel, just water, but you can walk along sandbags a very short distance to the beach.
A huge construction area is next to the hotel, a pit literally filled with building scrap and rubbish -- looks like an atomic testing site. The pricier waterfront rooms face the sea, but all cheaper "garden view" rooms open to The Pit. Not a nice sight at all.
Rooms are large, concrete, and starkly utilitarian. Not one scrap of art, decor, or distractions to make for a cozy/comfortable experience. You get a safe on the floor and a large bed -- that's it. Voices literally reverberate inside. Water pressure was low on the second floor.
Many beach bars with thumping music just a short distance along the beach. That's bad news if you want a quiet place to stay, but good news if you want to get home easily after a party. Many people come to Koh Phi Phi to party and socialize; expect to join the madness and enjoy yourself or stay far away. Don't come and then complain!
As a reference point for the review: I've been a backpacking budget traveler for over 10 years (it's my job) -- so I certainly don't expect luxury.