Naxos Hotels - Hotel Grotta or Korali Boutique Hotel

Hotel Grotta gets excellent revues and indeed has a great view over the sea towards the portera. It will be a good choice. Having said that how important is the beach to you? Grotta is high up on a hill and is on the windward side. There is a small pebbly beach with rough water at the foot of the hill but it really isn't suitable for swimming.
It is reasonably close ot Naxos waterfront and town so the location is good.
From my perspective if the beach is important ten you probably want to refocus on St George beach. It is a 10 minute walk in to Naxos town. It is actually part of the town and is where Koralli is located. It is a bit further from the port and bus stop than Grotta but is a great location. Korelli is back a stret from St George so itwill mean a 30 second walk to the beach. From the pictures it looks like you might get a sea view from the top floor.
If you want ocean view then consider Hotel Glaros, Studios Kalergis, Studios Naxos, perhaps even Raxos resort and Asteria. They are all going to give you sea views. A couple are in the same price range as Grotta and several are much less expensive.
Here are images
St George Beach Hotels Naxos http://www.flickr.com/photos/stanbr54/sets/72157632162394787/
St George Beach Naxos http://www.flickr.com/photos/stanbr54/sets/72157632113170279/
St George Beach Hotels Naxos http://www.flickr.com/photos/stanbr54/sets/72157632162394787/
St George Beach Naxos http://www.flickr.com/photos/stanbr54/sets/72157632113170279/

We stayed at Studio Naxos at St. George Beach. Not a fancy place, but clean, safe and centrally located. We were on the top floor with outstanding view of beach, water and other parts of the island. The owner is very kind, polite and helpful. The photos of Stanbr's Studios Naxos are what you can expect. If you have more to spend then the others look very nice, but we're budget traveler's and Studios Naxos was perfect for.

St. George Beach area is lovely, just a short walk from the waterfront and Old Town and if you don't want to walk to the waterfront there is a small town square even closer with tavernas, shops and other businesses.

I walked around Hotel Grotto area and it does look very nice but a little further walk to the waterfront.

In the August heat, I sure would not want to walk an 11-year-old for a full 30 minutes (at least) to Ag. Giorgios beach. And the walk BACK would dissipate the cooling effect of the beach so the child would be cranky by the time you toiled back up the hill. I say this as someone who has stayed at Hotel Grotta and its neighbor, Iliada Studios and who now has stayed at Ag. Giorgios beach for my last 5 Naxos visits. Forget the sea-view thing. Location trumps view.

Thank you for your advice! I agree and will refocus my hotel search to St. George's beach. I'm been looking at Nissaki (not sure I can get a reservation there), Korali (as I mentioned before), Villa Naxia Studios, Boutique Hotel Glaros, Galaxy, and Kalergis Studios. Are any of these on the beachfront? Do you have a recommendation? We're traveling with two 11 years, a ocean view would be nice but not a deal breaker, all the hotels seem to be reasonably priced, and being on the beach would also be nice but not critical. Also a hotel that had a familyroom would be good too but again not critical. Thanks so much for your help.

Kalergis has the best beach location ... right on the sands, all units have sea-facing balconies.

thank you!

Nissaki is directly on the beach. Glaros is right beside it and all rooms have beach views. Kalergis is a hindered meters away and on the beach. As I mentioned so is Asteria.

I didn't mention NIssaki because kbeg expressed doubt he could get a reservation there. ALL of the St. George places are going to be tough to book for August ... I wish you best luck!!