It was good value for money, especially over CNY holiday. Good enough buffet with even option of a cafe latte order. Before going to the airport we also ate lunch there and it was a delicious pasta! It was clean and the staff friendly. My kids/teenagers enjoyed the pool and the gym!
There is not much around this hotel, but the hotel offers a shuttle bus to a few malls, or you can pay 20-30MYR to the mall or beach nearby.
We had just stayed at the Shangrila Tanjun Aru for 3 days, which was amazing! The Palace was the option we found as the Shangrila was fully booked the other days. And since we could not find a resort we chose a inexpensive hotel. We went back to the Shangrila and did the island hopping to Sapi & Manukan from there as The Palace had no concierge service.
If your expectations are low and you want value off money, then The Palace is a good option- but it is more of a 3 stars than 4.