We stayed at Palace Ao Nang for 5 nights and it was fine. It looks a bit shabby from the outside (especially from the poolside) and could do with a lick of paint.
The staff were very friendly and smiley all the time which was nice.
Free wi-fi was great!
Each room has it's own balcony either looking onto the road (as we were) or onto the pool and mountainside. We had sea views from our room and it was good to look onto the road, great for people watching and we didn't find it noisy at all.
You are surrounded by shops, restuarants, bars and a 2 minute walk to the beach. Fantastic location we thought!
Breakfast however was a different story! The breakfast buffet is served up in a marquee in the back garden, however I wouldn't recommend eating anything that appears to be on a hotplate as they were not hot! The eggs were rock solid and cold, and we tried on various mornings! You can have fruit, yogurt, cereal, toast, tea and coffee and juice as a safer option!!
The room was quite nice for the money though and we had no problems here. But if you are travelling to Ao Nang in low season, we would recommend turning up at the beachfront as you will find plenty of bargains for rooms elsewhere.