Phi Phi is pricey compared to many of the other places we stayed in Thailand. Phuttachot may be simple and could definitely so with a fresh lick of paint, but it's so cheap it's hard to complain. The rooms are decent, the bed is comfy, you get a warm shower and the balcony is quite pleasant. There's no pool or nice view, it's very basic. It's about 10 minutes walk from the main bar and restaurant area but it's an easy walk and means that you get a good nights sleep. Overall it's not a bad place to stay when you're on a budget.
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