I have stayed in many Hotels in Phuket and find that if you have a bad expereince it does put you off, and that's life I suppose.
I have been staying in the Banthai on and off for about 8 years (way before it was the new building and was actually in the old rooms with the pool back on the roof).
http://www.banthaiphuket.com/
They always give me a discount on rooms and don't charge a joiner fee; but maybe because I know the people that own and run it and I was also in there when the Tsunami hit. I just ask them via email before I book and they seem to be really accomodating.
For facilities and location (the beach, Molly Malones, Watsons Starbucks, Hagan Dazz, Scuba Cat Divers etc) it is hard to beat, (room service is 24 hours and the gym is well stocked with good equipment and never that busy) the rooms are of a really high standard and if you can afford to pay a bit extra I will always choose this Hotel as a base in Patong but since they have done their renovation they have jacked up the prices, so I might have a change of Heart in December (although I got a room booked for 1200 baht in September).
The renovations are almost complete now and are just re-decorating the rooms, I was there in June when they were at it and it was just a bit of noise in the day time.
Anyway if you don't like it there are plenty of others to choose from.
Regards
Drew