Corfu has all sorts of accommodations, from the very basic package holiday apartments to the ultra luxurious villas with a pool overlooking the Med, complete with a cook and domestic help. My favourite and recommended accommodation would be the two Chandris hotels, both located approximately 10km north of Corfu Town at the Dassia resort. They are rated four-star, but the friendly and helpful staff adds a lot more to the rating.
The Chandris hotels have their own sandy beach complete with water sports facilities. They have an indoor and outdoor cinema, tennis and gym facilities, regular night entertainment and a beach taverna and bar. Bookings are usually half board with a huge selection buffet which satisfies even the most demanding palates. Thursday nights are usually Greek Barbeque nights, where 20 euros will buy you a fantastic selection of B-B-Q meats and folkloric dance entertainment. A must for every resident. In addition, Chandris hotels have an open door policy, allowing guests from other hotels and apartments nearby to use its bars, beach, and beach restaurants and even join the barbeque nights.
Obviously, facilities like the gym are free only for residents, but for a small fee, they can be used by non-residents too. If you want to stay in Chandris hotels, your best bet is to book your stay via a British Tour Operator (or German, Belgian, Dutch) who will sell you a package of flight, transport, and accommodation. This works a lot cheaper than a booking from yourself. Although Chandris are middle-class hotels, they offer various options depending on your budget. Apart from the standard rooms, you have the villas (which are comfortable, spacious, stone-built apartments with a personalised service) and the bungalows, which are somewhere in between the standard room and the villas.