We stayed here for just a week in August 2013. Lovely hotel. The staff couldn't be friendlier or more helpful, the rooms spotlessly clean, although basic. The hotel is in a good position, far enough from the shops etc to be quiet but not too far when walking out to the beach or for meals and drinks in the evening.
The resort itself is very quiet and therefore not very suitable for teenagers or for families with older children. We ate in a different restaurant each night of our stay and had a fantastic meal every night. We would highly recommend Nefeli (you need to try their version of Klefiko) and the Tulip restaurant which is located in a side street. We also ate in the family-run Meze restaurant on the sea front which was lovely. We visited the Cockney Café which had a wide variety or English dishes with enormous portions but really prefer to eat local cuisine when we holiday.
The drinks in the bars in Polichrono are not cheap. You are looking at around 6 euros for a spirit and mixer. However we feel that food is good value for money.
On our last evening we took a short cab ride into Hanioti. More choice of places to drink here with livelier bars and a bit more holiday atmosphere.