If you want to go on Crete and visit Agios Nikolaos, you should definitely stay in Regina Youth Hostel. ActualIy I can't name it hostel, because it is not an ordinary hostel, it is like big cosy house, where you feel like you are at home.
Elvira and her sons are wery welcomen, polite and nice. They will give you a lot of information about good places to visit in the city and around it and will make your staying in Agios Nikolaos absolutely great!