Kata Beach is great because its a small beach town close to Phuket and much quieter. Club Med has a hotel there. Kata beach has  a row of bars mostly small "here today gone tomorrow" bars. Try the Indian restaurant  at the cross roads which turn right into Phuket town. At the other end of the main road is a local restaurant that sells lunch fish curry and vegetables for only 30 Baht.(about $1). The bar next to the Indian place is pretty friendly too.

If you are making the trip from the Airport to Phuket, the bus will stop at a Travel Agency who will assure you that all the hotels are full but they can get you a room. Don't believe it- you can almost always browse around town and find a comfortable place in Kata. Don't use agents or travel advisers- they are unecessary.