Wow, Twin Lotus looks very, very nice! ^ That rate puts it in the swanky category for Lanta, I would think. Map shows it at the north end of the island, close to the port village of Saladan? That will save you a bit of transit time if you are flying in and out of Krabi (closest airport; it's a drive and ferry ride, or drive and speedboat, to get to Lanta). I stayed toward the middle of the island, and at the time the road was under reconstruction and transit up and down the island was a major hassle (that was in late 2003, so probably completed by now!).

Not sure about the conditions of Phi Phi Island after the tsunami, but it's a 60-minute ferry ride from Saladan if you care to make a day trip. If you like to snorkel, a day trip to Ko Rok national park is very nice (90 minutes west of Lanta by speedboat; DON'T take a longtail that far!). Tour boats also offer trips on the east side of Lanta to some beautiful smaller islands and a beach you get to by swimming through a dark cave. Very fun!

You might check out this other forum for more detailed questions about Thailand travels. I found it helpful planning our honeymoon on Lanta.

http://www.travelforum.org/thailand/

Have a good time!