Two pages
'blue widget hotels' and 'red widget hotels'
A text link on 'red widget hotels' page is 'blue widget hotels' linking to 'blue widget hotels' page
What ranks for 'blue widget hotels' page? Despite 'blue widget hotels' being optimised.
Well obviously, 'red widget hotels' ranks for 'blue widget hotels' because of the key phrase link on the page.
Common sense... a frustrating and stupid search engine. Giving emphasis not to the link inbound to the relevant page, but to the page the key phrase link is on.
It's been like this for ages but I can't figure out why G does it. It only serves to rank the wrong page for a term instead of the correct page. Furthermore the correct page if I resubmit will sit page one, the incorrect page that G chooses suppresses ranking and will sit 3rd or 4th (of ten results per page).
Recommendation
Do not keyword phrase link to other pages
Do the silly thing you've seen others do, and keyword phrase link the page to itself.