Having seen most of the sights in Oman over the years we decided to have a couple of days in Salalah - so different to Northern Oman.
Used Crowne Plaza rather than Hilton as we have Interconti Priority card with it's benefits.
Salalah tourist industry is centered around the mid summer monsoon when hotels can charge premium rates to Gulf and Saudi visitors but in the winter months it is a sun/sea/sightseeing town.
The hotels in March/April 2006 had a deal with a Swedish tour operator with a weekly package charter so both the Hilton and Crowne Plaza were full and catering for these clients. (on the day we visited the Hilton it was also heaving with QE2 guests on a dayt trip).
Crowne Plaza (originally the Holiday Inn) shows it's age but if you stay in the refurbished rooms in the main block they are large and very well furnished with good sea/garden views.The rooms in the wings seem small and basic.
Service in the bars and restaurant is good and the buffet/a la carte is also well presented and at a sensible price for this standard of hotel. Breakfast buffet is excellent.
Wine is 50% of the price of the Intercontintal Muscat.
Outside BBQ and buffet was very popular with package tour guests and the choice and quality looked good but some items had been out since 4pm (although under clingfilm) and the ice under the fresh fish had melted by 6pm so we gave it a miss.
Pool was busy and most loungers were gone by 10am. Lunch snack menu is very good and well prepared and presented. Sports bar (Irish Sports Bar in Salalah ??) normally empty but has happy hour!
Beach is super and natural although with few loungers and no service but frequent demonstrations (50m off shore) by a pod of dolphins. If you time your swim right you can be amongst them.
You can also watch the locals fishing each morning (very friendly and happy for photos) using Toyota pickups to tow their nets onto the beach. A local business selling winches would clean up.!
You can easily fit in two morning tours, frankencense and the coastline to the South on one day and the Souke on another.
One point - ensure your return flights on Oman Air are reconfirmed at least Twice- they are overbooked either side of Friday and we lost a half day in Muscat because we had to get the evening flight and heard of one Austrian chap who could not link up with his flight at Muscat and took 36 hours , via Dubai/Doha to get home.
In conclusion - you havn't really seen Oman if you don't visit Salalah.
As far as hotels are concerned you pay your money and take your choice - Crowne Plaza has best grounds and position - the Hilton has more modern buildings and facilities , but next to the power station and docks.

The Crowne Plaza Hotel in Salalah has a very dated feel to it and is in serious need of a refurbishment! The lobby has a 70s feel to it and does not exude class.
The hotel has a very damp smell but this probably affects most hotels in Salalah as we visited at the start of the Khareef- the monsoon. However we did not experience any rain.
There is not very much to do in Salalah and we hired a car to get out and about. The beach is a good beach and the pool area is OK.
We had lunch in the Hilton in Salalah and found this hotel to be much nicer, however the rates do reflect this. The Hilton has the unfortunate location heading out of Salalah near an oilfield and very close to the port of Salalah and when we visited the Hilton there were lots of british navy men there.
I would not bother coming to Salalah unless you want to escape the heat of Muscat and during the Khareef the land turns froim brown to green and also if you are a beach person and are just looking for some R&R then fine but otherwise give Salalah a miss!

Went diving with a fairly new company based at the Crowne Plaza Resort in Salalah. Omani diving instructor - very good english, very gentle and patient.
Went to a place called Mirbat and did shore dive -saw lots of lovely fish and a wreck. Hopong to go again next week but to a different place which is more rocky and apparently different fish and things. Refreshments and equipment were provided but you can use your own equipment if you want and if you want a lower price (however they are cheaper than in Muscat). They also have an arrangement with the hotel for a special room rate for divers who book through them (the company is called Samharam Falcon Watersports). They also do sightseeing tours, desert tours and apparently adventure tours across the mountains(i am not fit enough!) and fishing trips. Hoping to book for the dolphins next time.
Really enjoyed it. Will try and post some pictures soon.

Travellers have the choice of this at 1 end of Salalah or the Hilton at the opposite (but see the review of the Hamilton Towers) - both equally "inconvenient" (though this one is within walking distance of the Al Balid archaeological site). We breakfasted at both but only stayed here. The rate offered for "walk in" was OR52 including breakfast double - considerably less than the Hilton's best offer. Although clealry "up market" in decor it has a more glitzy/"big hotel" and less "select" atmosphere than the Hilton
The double room was pleasant rather than luxurious - the twins we looked at were a bit cramped. They had free internet access via the TV in the room
The evening meal (in January) was a disappointment. The main restaurant was closed for lunch and dinner and other than room service the only option was an outside restaurant with a rather limited menu (less than "room service" but it included a buffet which was quite good value!) and somewhat nosiy low brow entertainment - this badges itself as a "resort hotel" so you will enjoy yourself!! The grounds are large and green and the beach seemed better than that outside the Hilton.
Breakfast was noteworthy for being the only place in Oman (or even the whole of Arabia!) we came across serving PORK bacon!!! (in a bowl discreetly hidden away from the main buffet!) - so if you are suffering withdrawal symptoms this is the place for you.