I spent 2 weeks in Naxos Holidays Hotel and I must say that I didn't find it so bad as pictured in the other comments here.
The room was essential in the furniture as it often happens in Greece, but very clean. Bed linen and towels changed very often (every 3 days).
There was a tv set, a fridge and a air cond, the latter was a bit noisy though.
The only disappointment was very small balcony and bathroom.
Breakfast was essential too, but they never starved us!
The swimmingpool was clean although we never used it.
The reception was always attended both day and night and the staff always polite. Some of them also speak Italian.
We had a car so we have always driven into town, but for less lazy people than us, the Chora (Naxos town) is at a walking distance, as for Agios Georgios beach.
The hotel is located on the street from Agia Anna/Agios Prokopios to Chora, but the traffic isn't too noisy and there's a handy supermarket nearby.
This is not an hotel "de charme" or romantic, it is functional and no frills, and it is good for basic travellers who use it as base camp to explore the island.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC