Well, it's hard to say. I didn't expect plat recognition (a fruit plate or a drink would have been nice, though) and I do think the hotel thinks that ground floor rooms are an upgrade or better room. I think different, so this depends on your preferences.
My conclusion for this hotel is that it is nothing to write home about. It's a HI, nothing more and nothing special. A nice place to stay for a couple of nights when you're about, but certainly not a place where I would go for a week-long holiday or even plan my holiday around. Adding to this is the simple fact that I'm more frequently in ICs and CPs, so a HI is rather a 'basic' hotel for my taste. However, this also depends on your preferences.
It's a solid HI with a great beach and good staff. When you're based in KUL/BKK/SIN or about anyway, this certainly is good place to go for a long weekend, and, as I said, I wouldn't hesitate to recommend the hotel.