We stayed here for four nights and five days in January 2013. Phil and Jo were great, so friendly and welcoming. Phil showed us around and dropped us off at a place for dinner. We stayed in a studio room with no view (which we knew when we booked). It worked well for us because we were not in our room often, but if you care about the view or want more space, you should definitely upgrade. The only strange thing occurred when the staff brought us to our room, there were three or four younger people (I think they were siblings) sprayed the hall with something as we walked up (bug spray, air freshener, who knows) and then they stood in our room with us kind of awkwardly as the main girl showed us where things were. Not a big deal, just a little awkward. The room and bathroom were clean, and the bed was comfortable.
The hotel is a little ways off the main road, but you can walk to a restaurant within 5-10 minutes. It is also very quiet which we considered a pro. We did not do breakfast with the hotel, but walked to the Swedish bakery a minute or two down the road most mornings (good and cheap). You do have access to the pool and restaurant the hotel next-door, we sat by the pool one morning but other than did not go there.
It is a 15-20 minute walk to the beach, we went to Kata Beach but Karon is close by as well, and rented a chair for 100 baht a person. One day Phil and Jo set us up on a full day beach and snorkeling tour of the Similan Islands. You can stay the night, but due to timing we left early and got back late. It was an amazing place to visit and I would highly recommend it. Our final day Phil and Jo arranged a driver and tour guide, Mr. Wee, who was a great resource and a good way to see a lot of the surrounding area. For a reasonable fee, he drove us to four or five different locations (Big Buddha, Chalong Temple, other sightseeing spots, a beach for snorkeling). This was one of the highlights of our trip since we got to see so many different spots and learn a lot from Mr. Wee, I recommend scheduling some time with him if you are able.
Phil and Jo were the best of this hotel; they were great resources and really made our trip to the Phuket area wonderful. Overall we enjoyed our stay at Villareal Heights and would stay there again!