This resort is now operating as Dinawan Island Resort. You need to contact Marudu Express Travel in Kota Kinabalu to book.
Dinawan is a gorgeous, tiny island just off the coast of KK (about 40 mins road plus 10 mins speedboat transfer from the city centre). Little Dinawan is connected by a sand spit and shallow lagoon to another slightly bigger island. Both islands are forested can be explored by foot. One side is rocky, the other is sandy beach. Lots of marine/coastal critters and bird life. The resort is on the tiny island. Rustic wooden chalets are dotted right around the island. The ones nearest the restaurant face the lagoon, then it's a steep climb to a series of cliff-top ones with direct views out to sea, then down again to a set of sea-side ones. They are basic but comfortable, with good-sized balconies with views, large beds and desks. Some have A/C, but with the sea breeze you don't really need it. Power is generally only available at night. Showers are cold-water only. Cleanliness was only average.
Snorkelling trips (beach and boat) are organised twice a day or you can go out on our own at any time. We found the beach snorkelling very murky (early February). Kayaks are available for free use. Resort staff clean the beach nearest the restaurant each day, but elsewhere there is quite a bit of plastic rubbish, seaweed and coral debris on the beach - don't expect long stretches of clean, white sand. The water off the beaches is mostly shallow and warm. Beautiful views of sunset over the lagoon and ocean and sunrise over Mt Kinabalu.
Ample food is available four times a day, though the menu gets monotonous over the course of a few days. The food style is mostly Chinese-Malay. Tea and coffee are available all day. Staff were very friendly and eager to please.
There seems to be a lot of unrealised potential at this place. It could be a brilliant low-key resort, but it seems that the cabins have a very low occupancy rate and several buildings have fallen out of use. There's an unfinished appearance to much of the resort, and we had trouble finding information about the place on the web. Large groups of Chinese tourists came in for day trips every afternoon (we were there during the Chinese New Year holidays, probably at other times of year this wouldn't be such a regular occurrence), but after they'd left it was very quiet. We were the only westerners there and received royalty treatment, which we were a bit puzzled by! I'd be interested to return in a few years to see what happens to this place.