Travellers usually only tend to stay 1 night in Pamukkale to visit the famous travertines. And if you are one of them, Allgau Pension is perfectly sufficient. The room is very clean and basic. Dinner is wonderful too - I had fried fish / rice / salad etc for only 10 TL.
The pension is located at the end of the village road with Venus Hotel opposite it, but cost a fraction of its price (Venus Hotel definitely is a good choice too, having said that, just more expensive and upscale). It is probably a 5-10 min walk to Pamukkale central, but really, it is not that far since the village is tiny.
Wifi signal is stronger if you live nearer to the reception area. but since I was only there one night and not there to surf the internet, this wasnt an issue at all.