We visited Phuket for 5 nights and stayed near the Laguna portion for part of the trip and Kata Beach for the remainder. We wanted to stay near Kata Beach since we found ourselves going there a lot and this hotel was the perfect location - literally beach front! We didn't enjoy Patong bc we found it a bit seedy, and Kata was more laid back. The whole town is touristy, but at least it was more mellow.
We rented surfboards from Nautilus Dive & Surf Shop (also located on the beach) to go surfing and when we wanted to relax, we just walked over to the hotel pool for a dip and a nap. As someone else mentioned, you can rent lounge chairs and umbrellas on the beach from vendors for $100 Baht/ chair for the entire day.
Right around the hotel, there are places to eat and massage day spas. The tuk-tuk ("taxi") prices are expensive, and they don't seem to allow you to barter too much for a lower price. It was cheaper to walk outside of the hotel and find a tuk-tuk or car for transportation nearby (car to go farther or to the airport) than to arrange it through the hotel. We couldn't seem to find the official metered taxis anywhere. If you are going to a restaurant nearby, the restaurant sometimes provides free transportation - check the tourist brochures and magazine ads for the restaurants or call to see. If you sign up for activities with tour groups, diving, etc., the company will provide transportation.
The hotel charges for wireless internet, but there are small coffee shops and internet cafes near the hotel that are much cheaper. As someone else mentioned, the staff was friendly but not necessarily the most professional. For the most part, things were fine but there are little luxuries that they could provide (like an alarm clock). We ended up asking for wake-up calls and they were all on-time. In the rooms, there is a hair dryer, air conditioning, free toiletries, complimentary bottles of water, instant coffee, cable TV, etc. The rooms aren't super posh, but they were clean and we thought they were fine.
Overall, we had a good time - we were looking for a place to relax and get some sun and surf. The most frustrating part of the trip didn't have to do with the hotel but the transportation situation - the fact that the "taxis" were all over-charging even after bargaining down the prices and there didn't seem to be an alternative mode of transportation unless you were willing to rent a moped or car. We didn't want to rent a vehicle as we're not used to driving on the other side of the road and didn't want to deal with parking and gas. Since transportation was our major headache, staying at this hotel really made things easier as we could walk down the streets and look for restaurants and the beach was right out front. Arranging a car to the airport was around $1000 baht (for two people), and we ended up asking the many tuk-tuk and "taxi" drivers hanging out around outside the hotel the night before we left and found a ride for $800. Arriving at the Phuket airport and getting a ride to wherever you're staying is cheaper than going to the airport - around $450 baht for a car or you can take a bus (depending on where you are staying) or the hotel might provide a free transfer. If you walk outside of the airport terminal, you have a better chance of finding a real metered taxi - the signs that say "metered taxi" (and the guys walking around offering "taxi? taxi?" are often just private cars that have either a set price or you negotiate. The real taxis are hot pink/yellow or some other bright dual colors and actually have meters that you can see.
We booked the hotel through the website hotelopia.com since we've used them in the past and always good experiences. Just don't forget to print out the voucher to give when you check-in and if there is any problem with the booking, call their customer service. We had a problem with a booking in a different city and they immediately were able to call the hotel and fix the problem. We felt the price (less than $100 USD) for the Kata Beach Resort was a good deal for a beach front hotel, though considering how cheap things in Thailand are, it was on the expensive side. Still, it was worth it to us since we just wanted to hang out at the beach and pool and weren't interested in much sight-seeing (we did that earlier), eating or shopping.