First the positives. This hostel is incredible value for its location (right in the heart of Phuket Old Town), and has the friendliest staff. They provide a basic breakfast free of charge, but also sell cheap (for Phuket) drinks and good food. The atmosphere is laid back, and it’s pretty quiet at night.
Just a few things to mention that could be improved. The plumbing needs some attention, as when I was there water was backing up in the shower and toilets (presume a blockage somewhere), and the water pressure in the showers is very weak. There is nowhere to hang out in the evenings; after about 8pm the main reception/cafe is closed, the backdoor is locked, and the common area appears to be used for sleeping.
All that said this was a pleasant place to stay for a few nights, and is super cheap, so I would definitely recommend.