We stayed at the Island Blue Hotel for a week in October and it was a lovely holiday! The hotel is nice and very very clean. It's a lovely place that's not too expensive so very good value for money. We booked a double room but actually got a family suite because it was available. This meant we had access to a kitchen and a spare room and second bathroom. The room was nicely decorated (nice minimalistic style) and it was very very clean. The cleaner came in every day to clean it and change towels. The pool was amazing, big enough to have a swim, not too cold and again very clean. We did not have a problem finding a sun bed but I can see it being a bit crowded during high season. The inflatable mattresses and beach balls that hotel guests could use were a nice bonus- I haven't seen any other hotel do that.
The best thing about the hotel for us was the food! We booked a half- board stay which was turning out much cheaper than having dinner in any of the restaurants in Pefkos every night. The staff at the Elia restaurant were very friendly albeit sometimes a bit slow (although we didn't mind so much because we were on holiday and not in a rush!) and the food was great! There was a good selection of food for breakfast and a very good menu for dinner, including both international and Greek cuisine which is great because I like to try local cuisine. The stuffed plums and grilled halloumi were to die for and I can thoroughly recommend the Moussaka and Kleftiko. The only thing we didn't like were the steaks so if you would like a nice cut of beef for dinner it's probably best to go somewhere else.
The location of the hotel is great, close to the beach (although the beach was very crowded and sun beds were expensive so we didn't use it), close to a couple of supermarkets and bars and restaurants. Pefkos was easy to get to from the airport (we rented a car) and very close to Lindos which is amazing! As one reviewer already mentioned there is a lot of cats in the area. I love animals so it didn't bother me but I can see that some people might mind cats following them around.
All the other staff were also lovely, the only bad thing I can say about the hotel was that one of the cleaners stole a couple of our cigarettes. In hindsight we should have probably reported it but at the time we didn't care that much.