I booked 3 nights, and ended up staying for a week! I was originally in a downstairs room, but asked to be moved upstairs (to a balcony room), George was super accommodating and even picks up @ the ferry. While there are hotels closer to the beach/town... I had no problem walking and biking around Naxos.

The owner was really nice, he came to pick us up at the port and dropped us there when we left. The rooms are clean with privvate bathroom, a small kitchen with fridge, a balcony, TV and air conditionning (but it didn't work). The hotel is located not far from the center but count 15 minutes walking. There is a bus stop about 5 minutes from the hotel and from there you can take the buses going to the beaches which is very convenient.

Although room was small & cheap it had the benefits of aircon, tv, fridge & safe. A bonus is the free transfer to & from the port or airport. The owners are very friendly & we had a few conversations with George & his Mum!
If you're on a budget this is well worth considering, it's in a quiet location & not far into town or to the beach. In front of the Windmill is a convenient cafe (Heaven Bar & cafe) that does breakfast, snacks & has internet access. 2 supermarkets nearby & a short walk to the bus stop for exploring outside Naxos town.
The only negative was the temperamental shower, went hot or cold if someone else turned on a tap! It was no problem once I realised & was prepared for it!

Windmill Naxos is a great place to stay for travellers who doesn't want to spend to much on housing, like students. The rooms are pretty clean and are fully equipted. Our room had a small balconny so we could enjoy breakfast outside.
George is always close to help us getting around and is at the port, with his minivan to get us from and to the port.