If one wants a budget hotel than Rattana Mansion is the right place. As being in Phuket Town it is definitely far from beaches and transport is expensive in case one needs to go to patong or any other beaches. But Yes hotel is value for money. It do have old construction but it is pretty neat what one can't expect more while staying in budget hotel.
It do have local market around with ample of shopping oppurtunities. The place around is very cheap. The restaurant at the ground floor is also nice. The cuisine is limited but its good.
Overall a good place!!!!! so enjoy ur stay

**ACTUAL TRAVEL DATE - OCT 2011**

We found Rattana Mansion after our tuk tuk driver recommended it to us - we had no idea - first impression - outside was being renovated and was covered in scaffolding and equipment. Walking inside - basic but nice - small front desk area on the right and restaurant with seating on the left. Lady at the front desk was pleasant. Got our room - and had to walk up 4 flights of stairs to get to our room....This was something I needed to get used to in Thailand (most budget accommodations don't have elevators!!) Noticed lots of renos going on while goin up to the room - painting etc. Was actually nice to see. First impression of room - dark heavy drapes covered the windows, beds were clean and crisp. Bathroom looked clean. Opened the drapes to see a man standing on the balcony!! Was very surprised at this (he was a worker sitting on the railing - holding the scaffolding - and when he noticed us he just gave us a big smile - took off his hat - and waved... It was more entertaining than anything! We noticed our a/c didnt work - a quick jaunt downstairs to tell the front desk and they immediately brought us to a new room where the a/c did work. Very quick and efficient. No questions asked. Our new room was also clean and tidy - Had one small issue with the shower not draining properly but the cleaner just took out drain piece and then it was fine.

Guesthouse was in a great area - close to lots of stuff - easily in walking distance of many things! It was only about $20 a night so it was well worth the money I think. Also we ordered food from the restaurant one evening - a bit of a task since the people at the restaurant don't speak much English but we had fun pointing out things on the menu - they later brought the order right to our room - and it was all correct. I ordered Pad Se Ew and my travel buddy ordered Pad Thai. The Pad Se Ew was prolly the best I had of all the times I ate it while in Thailand.

I recommend this place for backpackers for sure. Its cheap - clean - and central. It did the job for us for sure.

To stay for a night when coming from Phuket airport and going to PP, this is just perfect. Next to shopping mall and McDonalds, close to the pier. It is simple but good, nice and clean