Overall this is a great budget option for 1 or 2 people. It isn't perfect but the location is awesome and the price is right.
The good: Getting there is a breeze. I was met at the water taxi dock and driven the short distance (250 meters straight-line) in a golf cart. This matters because you'll never find it for the first time on your own! If you come in by air its a bit longer ride but still only about 5 min. Location is all that you could ask for! You're in the middle of everything on Caye Caulker and can walk anywhere you might want to go in 5 minutes. Despite this, there's minimal street / nightlife noise. There's a super cheap same day laundry service right around the corner (which made traveling light easy). The jacuzzi is clean and easy accessible. Finally, the air conditioning works great! It was easy to keep the rooms cool and fairly dehumidifier, which was nice after being out in the midday sun.
The not so good: The construction is in kinda rough shape. There are gaps around the windows and under the front door and mosquitos seem to fit through nicely (I didn't see anything crawly though). The electrical outlets by the bed don't work and look burnt out. The hot water was warm (at best) and for a while on one day of my stay, there was no running water at all. The spring mattress was marginal and is certainly at the end of it's useful life.
Bottom line, I’d certainly stay here again. The great location and rock bottom price make up for the rough edges. If you’d be comfortable with a hostel, you'll probably love this place. If you're a strict Hilton/Marriott devotee, it might not be for you.