We stayed here for one night whilst on a sea kayaking trip with Seven Skies (an Australian luxury adventure company).
We had a a cabin close to the main reception area, which consisted of a living room, a bedroom with a queen bed and a bedroom with twin beds. It was all fairly comfortable although a little tatty in places, and the bathroom was small and in need of refurbishment.
It rained heavily during the afternoon that we were there, which wasn't a problem in itself, but there was a hole in the roof above the queen bed, which meant that it got soaked. There were a few other buildings that I thought were also in need of some care and attention.
The food and hospitality were fine, if nothing to rave about.
Would I recommend this hotel? If you're on a sea kayak and coming from Kota Kinabalu, then yes it's a perfectly decent place for a stop-over. If you're wanting to come by boat from Kota Kinabalu to an island resort for a while, then I would suggest that you stay at either Gayana Eco Resort or Bunga Raya Resort (both on Gaya Island).
