Pineapple Guesthouse (Karon Beach)
Phuket is blessed with many fine hotels and resorts, and these have somewhat taken over much of the beachfront property on the main beaches. Gone (long ago) are the days spoken of by Tony Wheeler in his intro to my well-thumbed Lonely Planet South East Asia On a Shoestring - he says Patong (in 1974) had no resorts but had "an open shelter where you could camp for 3 Baht a night". Well, every dog has it's day, and you can't stop progress. It's the same story all over the world. Backpackers discover a place, then guesthouses, beach huts, restaurants, bars and all the essential services quickly mushroom, then the place is found by "flashpackers", then independent (but not poor) travelers, then all hell breaks loose and Lo! You have a tourist resort, much hated by the common backpacker.
Thailand is all this and more, amplified 100 fold. Thailand is the original Lonely Planet Destination, and is still far and away the most popular backpacker destination in the world, although as Alex Garland wrote - "One of these days I'm going to find one of those Lonely Planet writers and I'm going to ask him, 'What's so f***ing lonely about Khao San Road?'"
Phuket is considered too expensive and too "touristy" for backpackers. Personally, as a resident who stays away from the tourist areas, I disagree, but as a resident you have a rather different perspective. Personally I find Koh Tao and certainly Phi Phi more touristy than Phuket in that there is nothing there other than tourism. Phuket has a large local population and was already a busy and relatively well off province before any tourists arrived. What backpackers mean by "touristy" is "a place too upmarket for a low budget traveler". But we are all tourists. I am a tourist and I have been here since 1999.
Excuse the rambling prelude. Accommodation prices in Phuket do tend to be a little high for your average backpacker, but there are options, especially in Phuket Town, where the On On Hotel can be found and many other hostels. Near the beach is a bit trickier and you may have to pay 15 dollars a night (wow!) for a cheaper room. In the Karon Plaza area at the Southern end of Karon Beach are several options like the Doolay Hostel, JJ Inn, and more. Here at Karon beach you can find the Pineapple Guesthouse, which is run by Steve, a very nice English guy and his wife Lek.
(above) Pineapple Guesthouse Front
Karon Plaza is built around a small temple, and can be a little hard to find! From the beach, head up the road past the Orchid Resort and you'll find the entrance to the Plaza next to a tailors. Pineapple is just round the corner from the little temple next door to Mama Noi restaurant, opposite the Siam Commercial Bank. The rooms are fairly simple, but all have bathroom, and all aircon rooms have cable TV, a fridge and minibar. The prices start at just 500 Baht in high season, and way lower in low season. You can always try asking for a long stay discount too. And just for "real" backpackers, there's a dorm too - beds at 180 Baht per night!
(above) Pineapple Guesthouse Room
Karon Plaza is a quiet area. I would recommend Pineapple if you like early nights but also like to be near a bit of life. Near Pineapple is a great little bar called 75 Satang, and you have lots of street food on the main road, plus little restaurants like Pim's Kitchen for cheap Thai food or try Mama Noi next door to Pineapple. Also in the plaza is Sunrise Divers, where I was the manager!
So, if you want a good lower price option in Phuket, I suggest you try the Pineapple Guesthouse. It's just 5 minutes walk from the beach and you can get a very good big English breakfast and other English style dishes like Egg, Bacon, Chips and Beans right there at the guesthouse, and Thai dishes too.
For full information and booking, you can book online at Agoda : Pineapple Guesthouse