One of the more popular places with backpackers, although not the best value for money.
Hotel Sing Soon Huat
26-27 New Bazaar
461 307
RM20-RM35
A cheaper, better alternative to Hotel Belaga. Behind the main bazaar so it's also a little quieter. Ask for the rooms on the second floor, as they are nicer.
There is a good selection of cheap accomodation in Belaga.