Here is a list of the best places you can stay in:
My personal favorite. Staff are very friendly and helpful. Free Wi-Fi even up to your room. Bed is cozy. Restaurant has a commanding view of the Bay. General area is in city proper - near the market, the airport, restaurants other areas are all just a tricycle away. Just a few steps away from Baywalk.
If you are willing to spend then Legend Palawan is still the best place to stay in to. Great buffet breakfast. Accommodating and helpful staff. Wi-Fi available (with a fee). Basically has all the great features of hotels. Includes airport transfers. General area is in city proper - near the market, the airport, restaurants other areas are all just a tricycle away.
3) Pads
Cheaper version of Legend, they are right beside Legend. So basically has the same features as Legend except for the buffet breakfast.
4) Microtel
If its a beach that you actually want to swim in to, is what you want - don't stay here! The actual beach is yards away and the only thing you're left with is the swimming pool. Wi-Fi is only in the lobby. Room is okay specially if you get the ones facing the beach because you have a door directly going out plus they have a lounge chair there beside your door should you want to relax. Buffet breakfast is okay. My only concern with this hotel is its location, its so far away from everything plus there is no cheap transportation if you want to go out.
What ever accommodations you choose, you will surely have a good time. Palawenos are very friendly and helpful :) Will add more to the list soon!

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