The majority of Patong hotels are outside the small city centre area. There are so many that its difficult to generalise but possible advantages are less noise and more luxurious surroundings as many of the up-market resorts are in this category.
Some of these hotels are actually located near Patong beach but just not near the nightlife section and require either a long walk or a short taxi ride should you decide to have a night on the town or to go shopping. Many do, however, run free shuttle services but it would pay to check on this service if you plan on using it regularly.
For a more in-depth look at Patong locations try reading the Patong page at wheretostayinphuket.com.