As one of Thailand's most popular and most expensive islands, my best advice here is to arrive off-season where the good hotels will negotiate for nightly rates. We originally planned on staying at a Lonely Planet recommended dingy backpackers for USD $30 for a double room but got a 3.5 star private beach front resort bungalow with swimming pool / jacuzzi down the road for $50 per night. Needless to say it was well worth the extra $20 per night.