Stay in Panwa Beach, which is just 9 kilometres away from the city center, and has 6 accommodation options available. Cloud19 Beach Retreat and By the Sea are a few wonderful hotels in this spot. You may also want to inspect the 30 hotels available in Chalong Bay, which is another neighbourhood only 10 kilometres outside of the town center. Examples of some decent choices here include Modern Thai Villa Rawai and Serenity Resort & Residences Phuket.
If you plan to hang out at Promthep Cape and Phuket Aquarium while you are spending time in Koh He, choose a hotel nearby. The By The Lake Villas and the Sunsuri Phuket are near Promthep Cape, while the Sri Panwa Phuket Luxury Pool Villa Hotel and Amatara Wellness Resort are near Phuket Aquarium.
For some alternatives, look at the Andara Resort Villas and the Chava Resort. They are 25 kilometres and 30 kilometres respectively from the main center. If these two aren't what you're looking for, try the Shore at Katathani or the Dusit Thani Laguna Pool Villa.
If you'd like to go to some close by localities, consider Chalong and Ko Racha Yai. Head 12 kilometres to the north of Koh He and you'll find Chalong. That said, Ko Racha Yai is 15 kilometres to the south. Hotels in Chalong are the Tamarind Villa and Villa Zolitude Resort & Spa. Ko Racha Yai choices include The Racha and Rayaburi Resort (Racha Island).
Hotels in Koh He start at AU$58 per night. Prices and availability subject to change. Additional terms may apply.