There are very few hotels in Khasab, but this is centainly not an option. Bathroom stank, beds were very uncomfortable and the noise inside and outside was unaceptable. And it was not cheap. Also there were "ladies" running up and down the stairs all night and a room full of bunk beds where a lot of guys were inside. Very weird! My mum was so scared that she did not want to sleep on her own in one room so she came to sleep with my husband and me.
I would recommend to go to Khasab Hotel, along the road and to the right in the big roundabout. We went there for breakfast and it was ok.