My friend and I stayed in a few places in KK, and this was the best budget option we found. There are some cheaper places around town, but the Step In has a great location and it's a lot cleaner. I stayed there in Oct. 2010 and noticed some older reviews saying they had problems with bed bugs. But we didn't have any problems at all, so maybe they fixed the problem. My friend and I had a 6 person room all to ourselves complete with AC. We certainly couldn't have found that anywhere else for the same price.

They staff are helpful, but they don't go out of their way for you. The place itself is relaxing and friendly. Their second-story location makes for some great people watching down on the street.

Overall I would certainly recommend this place to any backpacker getting to know Sabah.

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.