I stayed at the Mutiara last November. It's quite OK, and gets plus points for having its own beach separated from the rest of Batu Ferringhi crowd, but I'd rank it as 4 stars at best; it's a little old (70-80s?) and hasn't been refurbished much since then.
But if you do end up there, go for seafood at in the neighboring kampong, there's a moderately grubby-looking but cheap & good Chinese seafood place by the pier at the end of the road.