When you look at the pictures of this hotel, the rooms you likely see are the "Superior" rooms. These superior rooms are quite nice, spacious, comfortable, nice bathroom, and each has it's own private patio/courtyard. We had originally booked "Standard" rooms. The standard rooms however are tiny, have no A/C, have a shower and toilet outside on the porch (private), and a mosquito coil next to the bed... seriously. Fortunately, we ran into another guest who had the same issue and was able to upgrade. We spoke to the staff and were able to upgrade to the superior room for about $10/night extra. If the nicer rooms had not been available, we probably would have gone to another hotel.
Okay, with that little gem of information out of the way, this hotel isn't bad. The Superior rooms are quite nice, the staff was super friendly, the hotel restaurant had good food at average prices, they have wireless internet, a nice pool, you can rent mountain bikes, kayaks, etc, and they have an extensive list of massage and spa options. The property is also quite beautiful, with lush tropical forest, nice gardens, and fish ponds just our side the rooms. The location of the hotel, on the Panwa Cape, is quite a ways from anything. "Secluded" would be a good description. It is about 45 minutes from Patong Beach (where most of the action/nightlife is) and about 20 minutes from the nearest shopping mall. If you sign up for any of the tours to neighboring islands (Phi Phi, Krabbi, etc) expect about a 1-hour transit to the point of debarkation. This can lead so some early mornings. The hotel has a car and driver that can arrange to take you wherever you want to go. We drove around to several locations for the better part of the day and it cost about 1000 baht, which seemed very reasonable. They also offer transportation to the airport (about an hour away).
Would I recommend the hotel? That really depends on what your intentions are. If you want to fly to Phuket, and just have a place to relax, lay by the pool, maybe go on one or two tours, get a massages, and not be bothered by anyone for a week... then sure, this could be the place for you. However, if you are just looking for a place to sleep at night while you do a tour every day or party at Patong, then you might want to look elsewhere.
This hotel, and the Panwa-area in general, are expanding and developing to be more tourist-centric. It would be interesting to see how the area develops over the next few years.