The paint may be peeling and the furniture may hail from decades forgotten, but this old, yellow-walled hotel will suit budget backpackers just fine. The owner speaks English, the beds are comfy and rooms come with air-con and (sometimes) hot water.
The location is also a plus, as the hotel is close to the ferry terminal and is flanked by a laundry business, an internet cafe, a couple of ATMs and some seriously tasty warungs.