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Hotel Niko

Located by the sea in Puntamika, 3km (2 miles) from the Old Town, this peaceful, family-run hotel offers spacious rooms with thick red carpets and classical furnishing (the best ones have sea views and balconies, too). The main draw, however, is the ground floor restaurant Niko, which has been serving high-quality fresh fish on a waterside terrace since 1963—and also does a sumptuous breakfast for hotel guests.