Bed Attitude is a great place to stay within Kuah. Close to the Ferry Terminal, Eagle Square, and with easy access to cheap food and drinks.
Rooms are clean, bathrooms are great, and the common area has plenty of seating.
Due to our own travel plans, we actually ended up shortening our stay, but the Bed Attitude staff immediately refunded us for the lost nights, even though we expected to forfeit the cash.
Would definitely recommend them. :)
Only downside is location, in that is is about a half-hour drive to any of the main outdoor attractions, but if you hire a motorcycle then the problem is resolved.