Lofos Hill is a nice middle class hotel, which is mostly used by Scandinavian travel agencies, but you can also get a room coming from the street.
The place have a beautiful view over the harbour and the ruins of the old fortress of Kassiopi and you can see the beautiful sun down over the Mediterranean and Albania, which lies right on the other side.
The hotel lies on a little hill and is isolated and quiet, with no bars or discos to keep you up all night. But bring a mosquito net - there are lots of them.
Each room has a nice bathroom, a small kitchen, 2-4 beds, and a nice porch or veranda.