My husband and I stayed here for 1 night in January 2018; we had planned to stay for several more but, after 1, decided to eat the expense and return to the Palau Central (which is a great hotel, btw).
Our understanding is that this resort has actually been purchased by the same owners as the Palau Central, so perhaps they will bring their expertise and improve the Carolines, but right now we would not recommend staying here to anyone. Simply put, it is very overpriced for what you get. Yes, the views are amazing -- you are very high up, so get great views at sunset. But the views alone are not worth the price, particularly given comparable resorts. And if you want great views, there are any number of restaurants where you can find them, or (more likely) you can see them on boat/dive trips. Don't waste your money here.
One of the most frustrating and annoying parts of the stay was the nickel-and-dime approach that the hotel takes. Yes, you can order breakfast, or have them arrange a driver to town. But breakfast for each person is $8-10 (extra), and the ride into town is $2-7 each way, depending on where you are going. Many other hotels in Palau that are cheaper include breakfast and free transportation, particularly to restaurants or Koror. The same is true with internet -- yes, they have it in the lobby, but you have to buy their wifi card and open an account to use it. And yes, there is a minibar, but they charge you for the items. This is not a hotel where you are going to get showered with complimentary anything -- in marked contrast to other places, or even your standard hotel. When you are paying more than $250 for an unrenovated room, these little things add to the feeling that they are seeking to squeeze every last dime out of you.
Now, we would have lived with those things, but the room itself was very disappointing. First of all, when we arrived in the afternoon from diving, the AC had not been on -- even though our tour operator had told them when we were arriving, and all our luggage had been put in the room (so they knew the room was going to be used). So the room was an oven -- it was hotter than outside, which is the last thing you want after a day of diving and sun. We were both sweating after taking showers, which makes it hard to enjoy the setting. The cabins are very dated inside, and not at all insulated, so it took hours to cool down the room. What bothered us more was how dirty the cabin was -- the bathroom had areas of mold and did not appear clean, the bedsheets were discolored, and the futon had stains on it. The orange bath towels were rough and clearly very old. In short, nothing about the cabin felt romantic or nice. Rather, it felt very worn. Given that there was no internet, we would have also appreciated at least an updated phone book to call a restaurant about dinner. There was a phone book, but it was from the mid-2000s.
The next day, we were on the fence about whether to tough it out or leave, but when we returned from diving, the AC was off in the room again, and it was an oven (again). That did it. While the peace and quiet are nice, we were very frustrated that the room was essentially inhabitable again. When we said we were leaving, the management didn't say or do anything -- all they wanted to know is if we were going to pay for the room (consistent with the theme of everything there costs money). We were trying to enjoy our vacation, so didn't want to have a fight. But it would have been nice if they had inquired what was wrong and offered to address it.