You won't miss this hostel when you walk past it, it is painted in bright green.
It has 3 floors, reception, male and female floor. It has a large common area with open space on the reception floor. The location is convinient, close to the night market, street food and bar area. Some street kids always hang around in the area.
Rooms are ok in terms of cleaness but cramped if the dorm is fully occupied. Just book the whole room if you got two people, the price is similar if you book two beds. Simple breakfast included. and there is paid internet. It got locker in each room. Some problem with the shower pressure, and water stopped for 1 night during our 4 day stay.
The staff are helpful and patient. There are a few other hostels nearby not listed in guidebook at a cheaper price.
Tips: They have a discount voucher on the ferry if you want to make an island trip. There is a bus going to the ferry terminal behind the hostel. It can be confusing when you buy the ferry ticket, coz so many ferry companies going to the same places. Just make sure you go to the counter on the voucher.

We stayed there for three nights and paid 70RM. Our room had 5beds but was only for us (a couple), with shared bathroom.
Bed Bugs: We woke up first morning and thought that these were mosquito bites, as we left our window open. As it got worse during the next days and the bites were really itchy, we consulted a doctor. He said that these were bites by bed bugs.
staff: was partly very unfriendly, we recognized that the situation changed, after the owner returned.
summarized: don´t go there!

My partner and I reserved a room at the Step In Lodge based on a guide book recommendation. When booking, we specifically asked if there were bed bugs which they assured us there were not. Having arrived after a long day, we checked into our room and guess what, one quick look at the mattress, confirmed bed bugs. They were very apologetic and refunded our money. On a side note, the room cost 90 RM with air con and shared bathroom. After leaving, we happened upon Lai Lai which is a 2 star hotel and only 98 RM a night for a queen, air con and private bathroom.

Ok, so this was the first stop on my tour of Borneo and imagine my surprise when I woke up in the morning covered in bed bug bites. When I told the front desk staff, they were totally uninterested and didn't even offer send my clothes and sleeping sheet out to be washed (which is pretty much a standard practice in my experience when you are in a room infested and to try to prevent the spread of these bugs).

The room was 90 RM a night, which is a total rip off. You can stay at a budget hotel for way cheaper than that, with attached bathroom etc. and not just in a bunk bed full of bedbugs.

The older man working at the front counter was rude and unfriendly. I also noticed several of the younger guests who had stayed for several nights at step in were covered in these bites, and he started scowling at me as I told them that those bites were in fact bed bugs.

This is a major problem in Borneo - and most of the proprietors don't seem to really care or do anything about it to prevent them from spreading. Inspect rooms carefully when you arrive, and look at the mattress. I'd say for Borneo it might be worth it spending a bit more for a budget hotel - a lot of times you can get those for 60-90 a night, and try to avoid backpacker places if you don't want to have to wash ALL of your clothes and buy a bottle of raid everytime you end up somewhere that is infested. All of a sudden your 90 RM room + 50 RM to wash all of your clothes = 140 RM, way more than a hotel.