We stayed at Kassiopi Bay for one week at the end of August 2011.
We were four adults and a 3-year old.
The good:
1. The location in Kassiopi could not be better. It is very close to the town center (5 minute walk), but quiet. It is also very close to the better beaches. The views from the hotel are spectacular.
2. The price is very reasonable, even cheap.
3. The staff was helpful
4. The swimming pool is very nice
5. Free internet (slow though) just outside the reception.
The bad:
1. The hotel is not very well maintained - drains are often clogged, the rooms and the kitchen areas could be cleaner.
2. The tap water is not drinkable and tastes horrible. Not even suitable to brush one's teeth.
3. You may have to buy your own soap and toilet paper.
4. There are very few TV channels, none in English.
