I think most travellers who pass through Sungai Kolok are basically there for a single day to connect to the train and head elsewhere. In which case, the Venice Palace is perfectly adequate. It has a lot of (large) rooms, though appears relatively deserted. Things are generally pretty clean, albeit very basic. There is not a lot to do in the town but, whatever it does have, is easily walkable from here. The staff are pleasant enough and seem able to help with most things.
There are a lot worse options in the town, and probably only the Genting (further from the train station etc) and the Marina (more popular with... um... ‘professional girlfriends’ and the men that love them) are any more salubrious.