Suda's Guesthouse
8 thatapao road +66 77 504 366. friendly owners, but might try to sell you something. twin room with fan 250 baht, with a/c 350 baht.
Fame Guest House
Clean 10-room fan-only guest house. Here you can book transfers to Ko Tao 600 baht and anywhere else in the south of Thailand. Has a restaurant and bar with Thai and Euro food and fresh bread every day. Prices totally reasonable: fried chicken with ginger and fried mixed vegetables at 70 baht each, seafood 80 baht. Large bottle of Chang beer, 100 baht. Also a comprehensive Western menu. Internet. Car and motorbike rental.
Farang Bar
Farang Bar is a basic guest house with rooms with shared bathroom and free WiFi. The bar and restaurant gets a steady stream of local expats as well as plenty of tourists on their way to the islands or other parts of Thailand. The staff speak a fair amount of English. The offerings include 50 baht 330 ml beers, excellent western food and Thai food. Ivor the farang can also provide advice regarding Ko Tao and arrange bookings for you if needed i.e., he calls them and reserves. He does not sell tickets, unless you want him to. Very handy in high season.
Santavee New Rest House
Run by a very friendly and welcoming family. Clean rooms, lovely garden, bicycle and motorbike hire, helpful with local directions.
Suriya Hotel
Cheap hotel. Rooms are big and nice, little dusty. Asian toilet. Get an free bottle of water when check in.