Although been there a number of time, I've never yet slept at this place. However, it's a popular place for Norwegians. Erik and Liza is running the place, both being well known in Cebu and they know how to make guests feel welcome. The location is a little off city center, but they offer transportation regularly, and also motorbikes for rent(250/day).
Staying there is pretty relaxing. Hang out by the pool and bar area and enjoy one of the cheapest beers in Cebu. Their food is also good. No gourmet style, and on first hand it might seem a little expensive but Erik buys only good quality meat and sausages. They have BBQ dinners every Sunday all you can eat, so feel free to drop by even if you're not a guest at the hotel.
Rooms range from 1100 peso a day and up. If you intend long stay(longer than 6 months), you can ask them for a quote. They offer different kind of accommodation, up to larger houses.
In their garden you can watch big turtles and some fish
They have many returning guests that know a lot about Cebu, so it might be a good place for a newbie to start his vacation, to get plenty of tips.
Update April 2011: They are now finished with their new swimming pool with slides. They also built about 30 new rooms. I stayed in one of them recently, and they are spacious and spotless. A good bargain.
Check out their website for more info.
Say hi from Lars@ycebu if you drop by!