We stayed at the Liman Hotel pension that was #1 on both Let’s Go and Lonely Planet’s list, with good reason. ‘Mr. Happy’ met us right as we came through immigation, and walked us 2 minutes to the hotel. His English was almost better then ours. We shelled out the big $ ($50 a night) for a room with an amazing view of the ocean and town, and A/C. There are lots of less expensive rooms, including rooftop accomodation. The internet service was extremely pokey, but did eventually work. The laundry service was very cheap, and they did a great job. Finally, the breakfasts, on the rooftop, were a great way to start the day (although they didn’t start serving till 8AM, and when you’re in Turkey in August, you really want to get as early a start on the day as possible!). The only black mark against this hotel was the “free shuttle” they arranged to take us to Ephesus. The guy wanted to take us to his brother’s shop, sell us a map, etc etc and it was hard to get him to say no.
Overall, we would highly recommend this hotel. It was a great introduction to the Turkish hospitality we would get used to over the next 10 days.