Stayed here Sep.2011. First of all let me say that the hotel is great. Good location just outside of Gaios. Using the hotel minibus is less than two minutes to Gaios, or a 10 min walk (down hill and back up). Staff were fantastic, couldn't be more helpful. Rooms have a nice view of the garden (as a tip ask for room 303 as it has a bit of a distant sea view as well). What I put next are my observations of where the hotel could be even better. Don't judge the hotel simply on the following comments as there are just the potential improvement points and some tips for the weary traveller.

1) The pool setting and surround is great, but the water is very salty. Don't know if it is fresh water with chemicals in or actually salt water but it isn't pleasant to swim in after a while. I never saw the pool with more than a couple of people in and then only for a short amount of time. Kind of let the experience down for me. Take goggles if you like swimming. Your eyes will thank you.
2) The breakfast is good but a few things it could do better. The filter coffee for me was quite unpalatable. The milk is very thin. There is no variety day by day. The cooked food (scrambled egg, sausage, bacon and eggy bread) is cold as often as it is hot. Go for the nescafe instant sachets of coffee rather than the filter from the urn, much nicer and whilst you are making that put your cooked breakfast under the toaster oven to warm it up!
3) Wasps love honey. Honey is served for breakfast on yogurt (really nice it is as well). Have your honey course last otherwise you'll be inundated with wasps. It wouldn't be as much of a problem if there was a busboy keeping the tables clear of used bowls but tables are only bussed when people leave.
4) The kitchen in the rooms had a kettle, but there are no coffee sachets, milk tubs, tea bags etc. easy enough to buy from the local supermarket at the bottom of the road in gaios. Recommend you stop by the supermarket and get water, coffee, tea, sugar and milk as you pass by towards the hotel.
5) The hotel doesn't have pool towels available for guest use (or at least I didn't see any pool towel points). This would have been a big bonus for us as we only take carry on luggage and therefore no beach towels.
6) Air con is connected to the room key socket. So you can only have the air con on when in the room. That means returning to a baking hot room in the evening and then having to run the air con while you try to sleep. If you get a third floor room I'd recommend leaving the balcony door open while you are out in the evening. You get a room safe anyway so your valuables aren't at risk.
7) The turndown service could be a bit better. The room wasn't as clean as it should be when we arrived (hairs on the floor, tiles a bit mildewy, etc). But only minor really. Some days we didn't get fresh towels, but I'm told that some hotels on the island only give fresh towels every four days so we counted ourselves lucky. We had a light out in our room and whilst it didn't bother us enough to report it, we would have expected something like that to have been picked up by the maid service and fixed. Similarly the wall mounted shampoo/gel dispenser ran out on day three and never got topped up. The hotel also provides mini shampoo and soap etc, so no problem but it shows a lack of detail in the turn down.
8) The minibus times are on "greek" setting. The first excursion out is 10.30! We had been up 3 hours by 10.30. Then there are another couple during the day that go to gaios and a bit further afield. Then there's one at 4pm, 8pm and 10pm. For me 4pm is too early as it is still baking hot and lounging in the shade by the pool is called for. I think that they are missing a 6pm slot and we often found ourselves walking into gios at about 6pm to watch the yachts mooring for the evening.
9) The hotel doesn't really strike you as a place to take your evening meal. With more tavernas that you could ever sample in one holiday in gaios this isn't a problem. But I felt the hotel is missing a trick.
10) Snack and drink prices in the hotel are horrendous. Most snacks will set you back 7 to 10 Euros - stop at the supermarket and pick up some drinks and snacks for the day time. A beer (if memory serves) is about 4.5Eu for draught. (As an aside, be wary when the locals in gaios bring you a draught beer, they are skilled at making a third of it froth, take the bottles instead as they are the same price for the same volume but you get a definite measure).
11) A really insignificant problem next, some of the letters on the keyboard on the internet desk didn't work. Frustrating it was, but if they could be repaired the next person that uses the computer will be very grateful.

That's about all I can think of right now. Really these are minor problems and the hotel is, as far as I could gather talking to some of the locals and ex pats, the best on the island and comes highly recommended. I'm told the president of Greece stayed at Paxos Club when he visited the island a few years ago so you are in good company.