I'm not sure of the Andaman specifically - but found this on Trip Advisor -

*edited out*

Strange time to have a refurb to be honest - during high season??

But it has been commented by the TAT that they were actually looking to reduce the number of tourists to Thailand to concentrate on higher spending guests. I've actually been shocked by the seeming drop in backpackers everytime i've been back to Thailand. I guess university costs discourage gap years these days, a real shame as they should be made compulsory!

Thanks Sam, I had seen that on Tripadvisor as well but have also seen reports that the resort is to be totally remodelled...its already surrounded by posh hotels on either side so maybe it will go that way as well. Pity if it does as it was a much loved hotel.