We booked to stay for 4 days in October 2013. On arrival, the hotel manager was charming and extremely welcoming, going out of his way to show us on the local map how to get around the locality.
The room itself was as advertised: basic but clean. No toiletries in the bathroom, but the citronella candle in the bedroom was a nice touch. There was a lovely view out on the balcony too, looking down to the sea on one side.
The nearest beach was 10 minutes walk away (although there's little there: the financial crisis has destroyed the bars and restaurants that once lined up alongside the first beach) and Chania's Old Town (which is gorgeous and well worth a trip) is 20 minutes walk or a short bus ride away.
Unfortunately we found the paper thin walls around our room too much to contend with: we were staying on the ground floor and therefore heard everyone's comings and goings throughout the day and night, which kept us awake.
We were also unfortunate enough to have our room situated next door to that of a rather badly behaved toddler, who spent most nights screaming and running up and down the corridor, throwing toys around as he went. Not the hotel's fault certainly, but with the thin walls it made sleep impossible.
The manager, when we informed him that we were having to cut our trip short because of the noise levels, couldn't have been more apologetic, and insisted on paying our money back for the remainder of the stay, which was very kind. He seemed genuinely upset that we were calling time on our stay at his hotel, which he clearly adores.
We didn't get a chance to see the restaurant, but the reviews from other diners we saw sounded promising.
All in all, not bad for a budget trip, but bring your ear plugs if you're a light sleeper, and try and get a room on the higher floors.