I've just come back from a week at Koala Hotel in Kos town and I had a wonderful time. The hotel is family run and all the staff are extremely kind, friendly and helpful. This was especially important to me as I was travelling on my own.
My room was very clean, with a small fridge, aircon & tv (with a variety of foreign channels including BBC 24 hours channel). There was a narrow balcony with a table and chairs and the windows were all double-glazed so no noises from the street, rubbish trucks etc..The bathroom was quite small but all newly re-done and showed good quality. Towels were changed regularly. I read reviews about the wifi coverage, but personally I found I could get it wherever I tried (my room - 3rd floor, roof terrace, reception). Breakfast was fine, especally that seasame bread and lurpack butter!
The hotel itself is only 5 mins walk to the town beach and about 10-15 mins to the town. There are several good restaurants nearby (ask Dimitri for recommendations) as well as a handy supermarket on the corner which seems open all hours! There is a car rental place opposite the hotel too.
General:
-Paradise beach is definately worth a visit, at least in the low season (I hear it gets very crowded in high season). You can get a local bus from the centre of Kos town which takes approx 40 mins.
-Kos town is an excellent base as there is a very good choice of restaurants and bars (not sure about clubs), as well as allowing you to take trips to nearby islands, or even a day trip to Bodrum (Turkey).
In summary, if I were to return to Kos, I would definately stay at the Koala. I found it was in an excellent location, with friendly staff, and very good value for money (I booked through the hotel's own webpage). I would like to thank the team for all that they did.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC