I stayed at PP Palmtree resort (which is part of the Phi Phi Hotel Group) form Jan 4th - 10th 2012.
This was my third time in Phi Phi and by far, the nicest place i have stayed.
The island has changed a lot since my visit three years agi and has become much more commerical and busy, and I found that P P Palmtree was a little oasis away from it all as the pool can only be accessed by hotel guests unlike Phi Phi Hotel (where we were also considering staying). The rooms were really nice and they all had a little balcony whIch was usefull and all faced the pool. The bathroom is a good size and it actually has a working tv! We didnt have a pool entrance room but were kind of glad for that as those rooms didnt seem as private. There is security every night which only allows hotels guests in (they check a list) so the security and saftey is quite good. There is no elevator there so if you are staying on the top level there are a few staors to climb, but the staff are always happy to help you with your luggage etc when you need them.
The only negative things id say about the place (and they are small things) is that they are a bit anal with their towels. The beach/pool towels are on the small side and are not too keen on giving out more towels to people. However, oi must say the nice lady who was at the front desk during the day was very nice to us and allowed us to have 4 beach/pool towels every day, however when we returned them at night (before 8 - if you forget they get really upset and the girl that is on at night gives you some dirty looks).
Also, there are not that many lounge chairs by the pool so if you want to use the pool (which is small but really nice) then you need to get in and reserve on early.
There is also no wifi in the hotel, however, Matts Joint (restaraunt) around the corner has wifi so just get the password and you can stand at the entrance to the hotel while using Matt's Joint's wifi.
I onlny went to breakfast one day and it looked pretty nice, however if you turn left out of the hotel on the corner is a little cafe that makes the BEST iced coffee and omlette baguette on the island!
Also watch out for the pizza slices on the side of the street as im pretty sure i got food poisoning from them (and i have a strong stomach!)

My boyfriend and I stayed at this hotel for 2 nights. It was in a really good location – very close to the beach, restaurants, sports shops, and far enough away from the louder bars. The room (especially the bathroom) was really clean, comfortable and had really good air conditioning. The hotel had a very nice and clean swimming pool area. The breakfast buffet had a pretty good assortment of foods, which were quite tasty. We would definitely recommend this hotel to anyone and would stay there again!

I stayed at the P.P. Palm Tree for the second time and enjoyed it once again. I stayed in a suite on the top floor and was a little disappointed because it was not as large as the suite I stayed in on my previous stay but it was still nice. The hotel is very close to town and makes it easy to go to dinner and enjoy the bars. The pool is very small and kind of feels like the court yard in a prison. I would recommend going to the beach and renting a lounge chair for 200 baht a day and enjoying the scenery. There are hotels with better pools and views of the water on Phi Phi but the Palm Tree probably has the nicest rooms.

currently in the hotel for honeymoon, stayed 2 nights but didn't sleep a minute..
there are bedbugs.. - i have actually seen them..
when i went to the reception they laughed at me... asked for a different room, even a twin bed (on a honey moon!!!) but they ignored me and walked away...
i still have 2 nights there with no options to cancel so i don't know what to do...
i know the location is good but since this whole island is 20 minutes from side to side then a location is not what you should think about...