My husband and I just returned from 2 weeks in Palau. We stayed in the Palau Royal Resort (PRR) for the first 2 nights of our stay (it was an air/hotel package) then moved to the West Plaza Malakal for the remainder of our stay. The PRR had great amenities and very polite staff, sometimes almost to an irritating point. The beds are made for Japanese guests (which this hotel caters to) so they are hard as rocks to sleep on. The views from our room were amazing though and the pool and beach were great too. The breakfast which was included was good but again more of an Asian flair so if you are wanting a hearty American breakfast, go to one of the local restaurants which have them at very reasonable prices. After we moved to the West Plaza Malakal we were only about 1/2 of a block away from PRR so still in a good location. This hotel is a no frills, no view, no amenities place so please don't expect them if you stay there. The staff was very attentive, polite, and assisted us with everything. We were diving 3 tanks each day so we only needed a place to sleep so this place was great. They offer military discount which was great and the prices even without the discount were really reasonable. We stayed in a 2 bedroom apartment there which had a kitchenette and the original price was only $145 a night so the price was great for what we got. The beds were more of an American style so much more comfortable than the first place. We did have to sleep in twin beds because each bedroom had 2 twins instead of one larger one. I would recommend this place to anyone looking for an economic way to enjoy the amazing diving in Palau. Also if you plan to dive I recommend the Neco Marine dive shop. Most people use Sam's Tours so their boats are always very full and they often go to the same dive sites many times per week. Neco was much more personable, had better boats, less people per boat, and a great staff both for diving and the dive shop.

We stayed 3 nights at this hotel, it was very impressive how the service was delivered, staff speaks english, at the Waves restaurant, they are all attention to details, Whole bunch of breakfast was a big delight to start our day, swimming at the man made beach is always fun. The room is outstanding with a detail amenities set up in the room, cleanliness and found so secure. The view of the rock island and the beautiful sunrise watch in the morning.

The location is i bit of downside as the Resort is near to oil depot that spoiled the beauty of the property. Though town is near can be reach by walk, I found it quite dangerous to walk at night as the fast moving vehicles of local people might hit you, so better get a cab.
This is a very beautiful place to visit, Jelly fish lake, rock island, snokling and the peliliu island is the highlight or our trip.

Highly recommend this place. Surely I dream of coming back.

Visited the Nikko/PRR 7 nights in June, 2009. The hotel is gated with nicely maintained landscaping and modern, open public areas. The lobby is open-air though well covered for the frequent rains and is bordered by a stocked ponds with small sitting areas therein; the hallways are likewise open. The pool has a zero-depth entry though is meant only for wading. There is a man-made lagoon (open to the waterway behind the hotel) with a small artificial sand beach with loungers and umbrellas. I did see a couple of rats scurrying around. I'd hoped to be able to walk to nearby businesses but I misjudged the distance and needed a taxi to leave the hotel (I'd not recommend walking or bicycling on the main road after dark due to traffic and poor lighting). There is a spa but the prices seemed outrageous, even for a hotel that aspires to be a resort.
I had a king bedroom. It was nicely furnished with marble floors and modern if slightly worn furniture. There was a small desk and comfortable sitting chair with a flat-screen TV (mostly Japanese channels though there was BBC, CNN and a couple of other English-language channels). The porch, accessable via a sliding-glass door, was somewhat narrow but had two small chairs and a table. The bathroom was large, with marble vanity and recessed lighting and a tub with hand-held shower nozzle. There was a seperate toilet room. The bed was comfortable, if a bit firm, with individual adjustable reading lamps on either side.
The air-conditioning was controllable via a seperate thermostat and was able to keep the room at about 23 deg-C; a ceiling fan helped.
The restaurant overlooks the "beach" and public areas and is nicely furnished with a modern, simple look. The food was uniformly asian (breakfast, lunch and dinner) as were most of the other elements of the hotel. I was the only Western guest as far as I could tell the length of the 7 days I was there. The prices in the restaurant seemed excessive to me for the value - even with the cost of a taxi into Koror it was cheaper to go to an outside restaurant (and the food better and of a wider variety as well). It was by no means a gourmet restaurant - pretty basic Japanese food (it's good if you like fish-constantly). .
The staff seemed unusually attentive with doors consistently being opened and virtually every staff member greeting me by name. Everyone seemed eager to please though I had consistent comminication challenges with the Filipino/Japanese waitstaff, bellman, front-desk personnel, etc.
My biggest issue with the property was that the water from the faucets was not drinkable - you have to buy bottled water from the gift shop or drink the water in the restaurant (which is apparently filtered); there are notes asking that you not bring in food or drinks from outside the hotel.
In summary, the Nikko clearly caters to Japanese tourists with food, signage and other elements though I felt very welcome. I think the price of the room is a bit high for the quality and amenities and the prices of food, water, etc., is also high. The location is fairly central to Koror though you really need a taxi to go anywhere negating this as a benefit.

We were living in Manila for business purposes and went to Palau to dive. Since we travel alot we had an expectation for the Nikko. We stayed a few nights at this property pre/post our live aboard dive trip over the Christmas holiday. The resort is clean the rooms are ok. They could use an update. The drawer front fell off the dresser and the roof was leaking which caused a huge water stain on the ceiling. We seemed to be the only non asian guests and although we were treated respectfully the service was nothing outstanding, especially for the price of the property. Housekeeping never showed up and I had to call the front desk and urge them (URGE them) to send someone immediately. If we go back to Palau we would probably stay at PPR, they both seem to be about the same distance from town.