My friend and I stayed at Baan Krating for two nights while visiting Pai. Overall, the hotel is very nice: beautiful surrounding, very hight maintained garden and lodges. Very helpful and service oriented staff, although they speak very poor English. Despite, they try very hard to satisfy the hotel guests.
Breakfast was included; was good but very limited.
The only problem that we could find, that did not bother us that much, was ant problem in the bathroom: because the wooden rooms are surrounded with a luscious garden, ants can come in easily. There's no problem washing them down with water, but some might find it not so comfortable. Again, we did suffer from it too much.
Location wise, the hotel is 10-15 mins car ride from the city center. From 6:40-9:30 pm the hotel provides free transportation. After that there is no way to get back, but in the other hand, nothing's open in the town after 9:30 pm. During the day, you can order a taxi for 50 baht per person.
Our conclusion, very nice place, a bit secluded, beautiful surroundings, nice staff, very close to the river, nice pool - very good value for money!