The premise is simple yet promising and it has good buildup and character development, but it fails to deliver effective horror. The main thing that holds it back are the campy performances of the killers. The worst thing a serious horror movie can do (other than being boring) is turn into unintentional comedy, and this one very much does.
Always remember the film had a number you could call that would connect you to a mock "Pinewood Motel." Scared the hell out of me when I was younger. I think the number has finally been disconnected (1-888-9-VACANCY). Also remember that even when the movie was already on DVD it would still give you the option to purchase tickets. Read on Wikipedia more about it.