I discovered a great place to stay if you're visiting Salalah: the Arabian Sea Villas, about 300 meters east of the Crowne Plaza, on Dahariz Beach. (http://www.arabian-sea-villas.com/) Cheap & cheerful, western standards but Arabian hospitality. Owner Mussallem also speaks English, German, French. Receptionist is Mr. Haneef, also speaking English.
Arabian Sea Villas - telephone number is +968 2323 5833. Email contact:
We speak English German and French besides Arabic and local dialects. Come visit sunny Salalah soon!