Stayed at The Holiday Villa in Nov 2011 and at The Federal Villa 7 weeks later (lucky me!!) Here's a comparison for those of you undecided between the 2:
Check-in for both hotels is at The Holiday Villa, a staff member helped us with our luggage to the Federal Villa next door, about 4 mins away.
The room was a bit smaller, mainly due to the fact it didn't have a bed-setee, the balcony was smaller, the flat screen TV was smaller. There was more space in the bathroom as there was a shower but no bath.
The best thing about The Federal Villa was the peacefulness, away from the reception and pool area I slept much better.
No hair dryer in the bathroom either but you can get one from reception.
The biggest difference between the 2 hotels is the price - Federal is around half price!! This is is a no brainer for me - I've stayed at the Pelangi a few times too but I think the Federal Villa offers the best value accommodation in the Pantai Tengah/Cenang area and will definately stay there again on my next visit to the beautiful Island of Langkawi :-)

The Federal Villa is part of the Holiday Villa Complex. The rooms in the Federal are just as good but slightly cheaper. This is about are 10th visit to this hotel and we love it. Fantastic beach - vast grassed area with huge trees for shade and one of the biggest pools in Malaysia.
Not renowned for it's cuisine but the breakfast is more than adequate with a very large selection. We normally stay for two months of the year, enjoying the fantastic weather in Jan/Feb/Mar

If you wanna enjoy a holiday on the beach and feel nature, I think here is the place. U can spend all the day on the beach. We enjoyed simple time goes slow there. Especially it's nice to walk through the long beach in the morning. The swimming pool is big enough. Breakfast has many choices.
As someone left comments, it's not 5 stars hotel so some stuff missing but it has all we need so I think as the price of hotel it's all right. But I don't recommend it to someone wants something luxury.

we were 12 people together. the service & room quality was quite commendable for family stay. But the beach side BBQ party was nothing but a waste of money. The swimming pool was superb, but one of the swimming pool staff behaved rudely with my sister, that was a very shocking part ever received.