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Yes Diamond cottage is very nice ... may I say luxurious (certainly not feral) with a good pool, bar, restaurant & room service.Though it isn't girl friendly - but that shouldn't concern you.
The hotel is situated on a hill, so everything is an easy walk downhill. You have the choice of two beaches Karon & Kata plus plenty of shops, bars & restaurants etc.
Yeah, Patong is the go .... pay the money & catch a tuk tuk. Bus is cheaper but it will take you the long way around probably via Phuket Town, about an hour ... good for sightseeing ??
Tobacco ... I don't smoke!.. but the tailor mades smell like rollies.
You'll have a great time!
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