My girlfriend and I stayed in Hotel Sirena for 3 nights in June 2006.
The hotel is about 20-30mins walk to the centre of Hvar. Its a nice walk as it follows the coast. We hired mountain bikes, which reduced the journey to about 10mins (riding at a very very relax pace!)
The hotel is very basic. Our room didnt have a fan or air conditioning. But as our rooms balcony overviewed the hotels private beach, we weren't too bothered.
There is a small restuarant on site but it never seemed to be serving lunch when we wanted it! Although there was breakfast included with the room.
Clean and simple accommodation, but a little far from the action. Which can be a good thing if you enjoy and romantic stroll!