This tiny hotel is the 'Author's Choice' in the Lonely Planet. I'm not sure why. It's very traditional in a ramshackle kind of way and has plenty of charm, but it's not so charming that you feel you are staying somewhere special. Cimil, the owner, speaks great English (he studied in England for 5 years) and is helpful, but his hotel is so small he relies on a good relationship with his neighbour at Hotel Bella to provide the shuttle service to Ephesus that most hotels provide themselves. It's a nice location away from the town centre and right opposite the Basilica. It's also on the same street as the best restaurant in town - Karamese.
The staff at Hotel Bella were so helpful we really felt that we should have been giving them our money instead. However, Naz Han does a wonderful Turkish breakfast - the best we had all holiday - and if Cimil gets a cafe up and running, i imagine his food would be first class. We stayed on the ground floor, which I wouldn't recommend as a) you're right next to the road, but b) you're also next to the courtyard where guests have breakfast. It was out of season so we were the only guests so this wasn't a problem, but in summer I think you'd want to be upstairs. There's also a roof terrace with pretty good views.