Where to stay in Naxos? Not far from Naxos; Agios Prokopios actually has a beach and is a lively resort in itself with small grocery shops, restaurants (none I can recommend), and a bus stop which runs every 15th (high season) or 30th minutes into Naxos town (5 km).
Agios Prokopios is the best place to stay in Naxos if you want to stay close to both the action and the water.
The beach is 1.5 km long, if you don’t want to bathe right in the center of action where the bus stops then you can walk either to the left or right, and still find yourself on the same beach after many minutes of walking. The beach was just as good as Plaka beach (7 km long), and less muddy. My favorite beach was this one, and Agia Anna (the next beach when you head towards Plaka).
Katerina Hotel with rooms newly renovated or Katerina Studios (big, but shabby, not luxurious at all). I stayed in both a double room, and the apartment. Would not go for the apartment again if I didn’t have to. Bathrooms in all the rooms are small, clean, and well-kept. There is also a pool, but we did not use it (probably because my room did not face it so I didn’t feel like I had easy access (or control, most of the time I feel like going in a pool is when I see it’s empty).
The owner and the staff are very helpful and service-minded.
The breakfast is OK; limited, but useful. Something new is on the table every day.
My rating of Hotel Katerina:
If you want to upgrade then check out Kavos Naxos, according to the website “…awarded as one of the Best Small Hotels in Greece and one of the Special Places to Stay“. Not considered for my stay in 2011, because rates are about 190 Euro each night (August 2013), but if you don’t mind paying for these gorgeous suites/villas you should.