our group = 10 roadcyclists + 10 supporters (wives and kids) stayed there for 2 weeks begining April 4, 2011.
It was nice choice for us
1. Location is very good - near the center and seashore - but not very close to the busy road along the seashore, so it was rather quiet (but damn cypriots like to ride LOUDLY even on small streets). In fact location was the main driver of our choice.
2. They provided us with garage for our bikes
3. Food was ok, though monotonous (its ok for me)
4. My room was rather clean, though rather small, and furniture is not very new.
5. Staff was friendly and helpful
6. Free wi-fi in the lobby (and sometimes in the room)
7. Bike shop and laundry are in vicinity (as well as nice restaurants and shops with food/water/wine)

Minuses
1. Small restaurant. We asked to provide us with a long table to sit altogether.
2. Small lobby with shabby sofas and chairs
3. Pool is not suitable for trainings (but I doubt that any 3 star hotel as it)

So generally this hotel was perfectly ok for our purposes (sleep and eat, walks to the city center). We preferred it to Arsinoe and Crusader which were visited in previous years, though they were slightly cheaper.

I think our next year choice will be Kapetanios.

PS
Before us a cycling team from Poland (on tandems !!!) arrived (with families), so sport team was 40-50 people in total and I heard barman (very hot woman) complained to guy that "business is not very good, there are a lot of sportsmen and they are not drinking"

We have just returned from a months stay at the Kapetanios and have enjoyed every minute.The hotel is clean, the staff very friendly and helpful, the food was good but if there was nothing you really fancied the chef would be happy to supply you with some thing else.We have never stayed in such a friendly hotel and this made our holiday all the more enjoyable. Mr Janis and his boys in the resturant and the lovely Christina in the bar all deserve a pat on the back for a job well done

We stayed in Kapetanios on Jul 17-27 and that was a very good and peaceful vacation.
Back to hotel: it is definitely honest 3 stars. On the first day we were given a room # 609 - not very nice except for the view. even if it was clean but it looked more like a room for staff - very-very small and no balcony. But they gave us the other room without any problems the next day. The new room (304) was really nice, much space, with a good balcony and view. we were entirely satisfied. The staff and managers in Kapetanios are very helpful and friendly, cleaning - faultless. We were on B&B basis - the breakfast was the same every day but sufficient. we found 2 great takeaways (local - Kapatsos and Thai/Chinese - Angelinas) within 10-15 min walk and often had our dinner out at the balcony. The price for the spirits in local minimarkets is the same and sometimes even lower than in duty free(!!). The beach is very close and even if not very nice at first gaze (narrow, dark sand), but actually very comfortable. Altogether: really nice and high quality comfortable hotel, especially for those, who are NOT going to spend the whole vacation near the swimming pool.

Booked a cheap holiday via HolidaysDirect (Co-op) - spent 3 weeks at Kapetanios on B&B. Room very clean and comfortable, but needs a bit of updating - nothing major. Breakfast was adequate but repetitious - same fruit(tinned peaches) every day, same ham and cheese. The eggs were either boiled(daily) and fried or scrambled (alternate days). Ate a la carte one night - that was enough. Crab salad was actually crab sticks, and vegetables were cooked from frozen - disappointing. Staff very pleasant and hard working. Overall decent value.