Kalpitiya is still undeveloped and after spending 10 days looking around, I can say this is by far the best hotel in the area.
The hotel is on the beach, has a great pool, modern air conditioning in the rooms and is very clean. It's also perfectly situated by a lagoon if you want to kitesurf.
After speaking to the manager he is working on improving the food and service levels as some staff were slow due to a lack of English and experience. Don't let this put you off as changes were being implemented towards the end of our stay and there are some great local reataurants nearby.