While Penny's place is located outside of the walls of the old city and so is a little bit of a distance from town I cannot recommend it enough. Taxi's and tuk tuks are readily available for around 100baht and the distance is even walkable. Plus the benefits of Penny's Place more than make up for this minor inconvenience to some.
For starters, Penny's Place is really cheap. We payed 500Baht per night for an airconditioned room, which worked out to 250 Baht per person. This is less than we have payed for some guesthouses. The accommodation was always clean and really good for it's price, with fresh water a fridge, comfortable beds, television and a large bathroom (yes you do have to go onto the balcony to access the bathroom, but in warm weather one step outside won't hurt).
However what really sells this place is the service. From the start Stephanie was super nice to us. She recommended some activities for us, setting us up with a cooking school and ziplining, both of which she had tried herself. After each activity she would ask us how it went, seeming to really care whether or not we enjoyed it, and she was often full of other helpful advice, trying to negotiate cheap taxi's for us and everything. We were allowed to leave our luggage there for an overnight trip and returned to find it safe, and with many questions about our experience, genuine interest questions too. In fact, she even asked if we needed her to ring the location of the trip when the van to pick us up was late in the morning. She also made sure we felt welcome to use the complimentary tea and coffee services, and the breakfast, even bringing us over some of the delicious biscuits that they supplied free of charge.
Before leaving we were each given a little keyring from Stephanie that were adorable, a token of our stay that will always remind us of the wonderful time we had there. It is hard to imagine how any hotel on this trip will live up to the fantastic experience that was Penny's Place. Book this place and you won't be disappointed, as Stephanie and her husband will go out of their way to make sure you enjoy your trip.