Inviting resort with individual cottages, all of which are a little different from one another, although wooden furnishings and colourful flourishes are universal. Some rooms have cool, semi-outdoor showers. Perhaps more of a highlight than the rooms are the gardens loaded with coconut trees that centre around a pool and the delicious beach out front (reasonable snorkelling too).
It's not actually in Labuan itself, but on the opposite side of the horseshoe bay to the south and about a 40km drive from Labuan town itself. Ideally you need private transport to get there from Labuan.