This small hostel-style place was perfect for our family for 5 nights (attached bathroom): near some good restaurants, a great supermarket, a taxi stand, and easy 10-minute walk to the Jesselton Ferry. Staff were incredibly friendly and helpful; beds and room were very clean and comfy; bathroom was more camping-style (bring your own TP). Hard to find - even taxi drivers had trouble locating the address, so ask them to call and get directions (or say "Near Sunday Market, next to Milimewa Store and Sugar Bun").
Pros: Staff - amazing young women who speak fluent English, learned our names, and answered all of our questions.
Cons: Bathroom cleanliness - lots of deferred maintenance in this climate means mold. The downstairs karaoke was loud but was done by 11 each night.
Location: Sabia mall is 5-minute walk; boats to the TARP marine park islands is a 10-minute walk. Lots of restaurants (esp. Chinese and Western).