Named after the Sipadan Island dive spot nearby, the Sipadan Water Village Resort is completely over the water, featuring 45 cottages in 4 different classes ranging from modest to enormous. It's the popular diving packages that include transportation and the diving itself that are very popular here, so those who aren't planning on scuba might be better off elsewhere.
There are sandy beaches on Mabul Island, but otherwise there aren't many activities on offer. There are no TVs or Wi-Fi in the rooms either, so again, this places is all about the excellent diving and its packages that include it.
Reviews for the Sipadan Water Village Resort are mostly positive, but a bit mixed. The scuba diving is the main attraction here, and those who come on diving packages tend to be quite happy with everything, partly because they are spending so much time away from the hotel.
Others point out that the service can be slow and sometimes disorganized. The food in the restaurant seems to suit some people more than others. This is definitely a dive resort so for the excellent diving nearby it could be great value, but perhaps not for others.