We had a lovely 5-day stay on Rab and this hotel made for a good base. The view from our (sea view) balcony was fabulous and well worth the extra we paid, the pool was good (if cold) and the location, just 15 mins walk around the marina from the Old Town was excellent.
On the other hand, the food was deeply unimpressive (bland buffet consisting of overcooked fish, grilled meat, a stew and standard pasta/vegetable fayre - we ended up eating out on two of our 5 nights), everything was a bit tired and the hotel seemed to charge extras for almost everything (wifi in the lobby which wasn't even especially fast, using the minibars for your own drinks etc). The building is also appallingly ugly, but that doesn't really matter when you're in it!
Overall, it does a good job - and the view from the balcony was really quite something. Would recommend but not with overwhelming enthusiasm.