I find choosing a hotel in Mykonos a bit like picking one in South Beach there just isn't an obvious perfect choice. Nevertheless, here is a rundown of my best picks.
San Marco Hotel (www.sanmarco.gr) While San Marco looks like a large resort it actually has about 80 rooms. The hotel is perfect for families and couples looking for an overall great value. The decor blends traditional Greek with some modern elements, and the hotel is situated so as to enjoy spectacular sunsets. It's just a 10-minute car ride to town (unlike resorts on Ornos Bay and other beaches). This is always the question in Mykonos: to stay in or outside of town. Staying outside of town is usually better if one prefers to relax at the hotel. If one is planning to go out in town each night, then a hotel in town is the better choice.
The Semeli Hands down, this is a smart luxury pick. Rooms are small, but thats fairly standard in town. With excellent service and very nice staff, youll feel like you are part of the family. The owner is there almost every night chatting until 3am on the hotel terrace, which overlooks the pretty pool. Décor is modern rather than traditional Greek. The Semeli is an easy walk into town.
The Rochari Hotel Go here for a great value while still staying in town, but ask for a room with a renovated bath. The Rochari costs about 130 euros less per night than the Semeli.
Cavo Tagoo This luxury property is located a five-minute drive outside of town. It's definitely pricey. If you don't stay here, do go for a sunset cocktail and a bite to eat the restaurant is superb.
Carbonaki (www.carbonaki.gr) Another budget option in town, this very simple property has small rooms and a great location. Overall, its a good deal.
Belvedere Hotel The Belvedere costs more than the Semeli and I didn't feel the extra cost was worth it. Still, it's "the" place to stay in town. The hotel is literally next door to the Semeli. Go for dinner here at Matsuhisa Mykonos (http://www.shermanstravel.com/travel_guides/Mykonos/restaurants/review/Matsuhisa_Mykonos), a Nobu outpost that's worth the splurge.
Pelican (www.pelican-hotels.com) Located up a hill just a three-minute walk outside of town, this place is simple and a great budget pick. It's also a bit of a secret that guests here can use the pool at the Elysium (since Pelican doesn't have one); just walk across the street. The only drawback is hiking up the hill to the hotel later at night.
For general trip-planning information, see our Mykonos Travel Guide.