most happening place in kota kinabalu. the handicraft market building reminded me of old wet market, gambir street, kuching, sarawak.
I moved to the 3rd Floor after the 2nd day which gave me full view of the ocean. remarkable.
Lots of pigeons around too. easy access to the City Bus and Mini Bus Terminal. it cost RM0.50 from the Terminal to the bus stop in front of Warisan Square. Costing about RM1.00 from the city to Tuaran.
A&J Budget has the most friendly staff and atmosphere.

We arrived in KK fairly late and it was raining cats and dogs. Hence, we followed the obvious step: Lonely Planet, budged accommodation, step in lodge. But they had only a room with out windows (nothing for us) or a dorm room with bunk beds exclusively for us for 90 MYR (nothing for us!) or two dorm beds with window (definitely nothing for us!!!).

But they were so nice to give us some ideas where to look.

Just down the road at the main road along the waterfront opposite of the handicraft market lies the A&J. At first we didn't want to go in, as the entrance is a stairway next to a shop, selling shark fins and other horrible and smelly things made out of once beautiful animals (but that is a completely different story and not relevant to this evaluation). But the smell is relevant.

On the first floor is the lobby where we were welcomed. They had a corner room on the 3rd floor with sea view for us. The man in charge was really sweet and apologized many times for the inconvenience of having the bath room not in the room. But that isn't much of a deal to us. Especially when there is no one else using it besides the people sleeping in 307. It is the only room with out en-suite.

The location is ideal for exploring KK bye foot.

Tea and water is accessible for free at the lobby.

The staff was nice and friendly and spoke enough english to help us in any situation.

Tour booking through them is possible.

Well, that's it for this one. Cheers

P.S.
if you don't like being woken up by the singing of a muslim muezzin at around 5 am than you might consider a room with out window or to the back side of the house.