We had a good experience staying at the Palace hotel (not to be confused with the Berjaya Palace) for one night. I would not recommend a long stay, but as a stopover hotel or if you are on a budget it is fine.

Taxi from the airport to the hotel was 30 MR.

I wasn't expecting too much since I paid only $60 for the three of us for one night. I was pleasantly surprised. The dinner was quite good and the included breakfast too. The room looks simple but still has all amenities, including flat screen TV, fridge, small but ok bathroom, decent beds and decent airco.

It is not in the centre of Kota Kinabalu (a stiff 20 minute walk along a big road) but then again there is not much to do/see in the centre except one decent shopping mall.

we stayed for 3 nights - thankfully not nay longer as the hotel is closer to 2 star than the stated star ratings. the staff we're friendly but not very helpful, breakfast very basic and the pool was closed thoughout our stay (which we were unaware of when we booked).
the make matters worse, the hotel expereinced a water shortage and the staff didnt bother to inform the guests!!!
the room was large with good views and that's about it. if you're looking for a basic, cheap place to just sleep, then book here...if you're looking for more, then avoid!

Was frustrated with the hotels' decision to close the swimming pool starting from 3.00p.m. on 7 August 2010 for a private party. Later, found out that the private party was for the hotel manager's son/daughter birthday party. Instead of organizing the party elsewhere, the hotel put the personal interest of the employee above the needs and wants of their paying guests....top class attitude for a hotel that used to be marred with bad reputation on services and facilities... keep it up and history will repeat itself...

During the function, you can see several hotel guests, some with little kids, standing at the restaurant balcony overlooking the swimming pool where the event was held. Did the sellfish manager offered the guests to join in? NOPE...totally being ignored...yes...keep it up and sooner or later you'll notice customers ignoring your hotel, your business...

It is such a sad thing to see...a hotel that is uniquely designed in an equally unique location, and has gone through extensive renovation...being managed by a team/person that obviously doesn't know to separate personal and business matters. For crying out loud...this is a hotel...a hospitality operation...not some palm oil farm or barnyard!

Really felt for these guys watching me limp through the front doors sodden from a downpour, weary from an hours trek trying to find them (later realising I had gone completly the wrong way). Not only did they honour my previous booking that I had 'no showed' for but quickly assisted me to my room and were so friendly getting me comfortable - all the while noticing I wasn't their usual business clientele. Such was their service I threw budget to the wind and stayed an additional night. Costs were AUD$67 for first night (deluxe room which was fantastic) and AUD $43 for 2nd night (standard room) both included a very extensive breakfast.
It's hidden on a beatiful grassy hill away from the noise of KK but still in walking distance to both the centre & bus terminal. It also has a shopping mall across the road.
I highly reccommend this place