Stayed for a fortnight in July travelling with Sunvil Holidays. From the start the staff were very friendly and helpful and the flowers and champagne I'd arranged through the Heliotropio agency were there for us on arrival. We were in room 14 which had a small balcony but fantastic views over the islands and was a great place to spi a brandy and watch the boats come and go. The hotel itself is a fairly old building with few modern features so if you're looking for a Holiday Inn (and who would be?) then forget it. Breakfast simple but perfectly adequate and again with great views across to the islands.
Location was ideal, being only a five minute walk from the old port. Admittedly this was up some stairs but unless you've significant mobility issues then this shouldn't be a problem. Our luggage was dropped at the Heliotropio office at the harbour and they took it to the hotel for us. We also rented a scooter for the fortnight from Aegean Cars who are based in the Heliotropio offices. Cost around 200 euro for the fortnight and despite me manageing the break the brake handle I was only charged a very reasonable 15 euros to repair the damage.
Ate very well at Lo & La and the little fish restaurant next to the fish market in the old port. Also Scuna on the club strip was first class. Rarely paid more than 40 euro for two with wine.
Some great bars, including the piano bar (Norwegian with super live music) and Kentavros (quaint with the best music I've heard in a bar for a long time!). Avoid the Rock & Roll bar on the front unless you want to pay 7 euro for a small bottle of beer and also be told where you're allowed to sit. I think that some bars in Skiathos need to have a look at their prices!
Had a nice day on the yacht with Yiannis and his dog who can be found between the harbour and club strip.
I also have to praise Little Banana beach. Under no circumstances should this be confused with the seething noisey Big Banana. Albeit 90% nudist, the beach is lovely, peaceful and with a good little bar/taverna serving very reasonable food and drinks. To find, go onto Big Banana and turn right to scrabble over the rocks (not too difficult). It's about a 20 minute scooter ride but well worth it.
Finally a word about the shambles that is Viking Airways. Our flight from Manchester was delayed by something like 20 hours due to a technical fault. To be fair to Sunvil, they managed to get us on another flight going out just two hours later than the Viking flight. Coming back the Manchester flight was delayed/cancelled (still can't find out which) but again Sunvil managed to get us on the Bristol flight and then got us bussed up from Bristol resulting in a four hour delay. Motto: use Sunvil but not if they continue to use Viking for their flights!
Would certainly go back to Skiathos but perhaps a fortnight was bit too long and I'd probably do a week on Skopelos and a week on Skiathos next time!

Our extended family of eight stayed here because it was just around the corner from the relative we were visiting, a longtime Skiathos expat. We all liked it a lot. We found it to be very clean and extremely well maintained, with lots of marble fixtures. The one thing we did not like was the small open hand-held showers, which inevitably resulted in lots of water spilling onto the bathroom floor. But then, we are Americans unskilled in the art of showering at close quarters. We did not have balconies but had very nice views out over the water. It is a steep walk up from the harbor but that is what you have to pay for the views. It is just a short stroll down to the tavernas and a five minute walk back up. The hotel appears to be run by Germans. The reception lady, at any rate, was German. The breakfast was fine in a very nice outdoor setting overlooking the water. Cautions. No WiFi. No credit cards (I think, my father-in-law was paying) unless worked through your travel agent. I would stay there again in a heartbeat.

I stayed at this pathetic "hostel" On Saturday on July 24th 2010. We came to Skiathos by boat and checked in at 10:00 pm. The reception was very unfriendly and the girl at the front desk did not even greet us. Anyways, we left our stuff at the room and went out to enjoy our night at the island. When we came back at the hotel at 3:00 and tried to make our bed (YES! there was only one sheet at the end of the bed) We discovered that the sheet was rough as SAND PAPER!!!!! On top of that it was filled with holes!!! ( I will provide pics in the next few days. Those sheets where at least 20 years old-undescribably rough and not even a DOG would sleep in them!
The next day, around 11am, we discovered that there was NO HOT WATER!
I called the forn desk and the lady spoke to me in broken greek, she said: "Let it run for 15 minutes"
After the 15 minutes passed, I called again and she said: "There is no hot water-The plummer is coming! I was stuned! She said there is nothing they can do about it....
After we checked out, I complained about the water and the sheets. HEr answer? "Thats how sheets are here!"
On top of all this we paid 80 EUROS for one night!!!
When we left, the woman at the front desk "Thanked" us in a cocky way! You draw your own conclusions...
Anyways, I am Greek and have travelled to most Greek Islands. Skiathos is a beautifull island but BY FAR THE WORST in services AND THE MOST EXPENSIVE ONE!!
People are horrible there and very unfriendly. Oh by the way, anyone feeling like paying 14 euros for a mojito on the beach???

Average equates to middle of the road B&B. Did not inform us but cash only, which could be inconvenient.