This is probably one of the best locations you can ask for. The beach is literally 30 steps to the right of the entrance. If you turn left instead, then walking (and staying on the same road) will take you to the nice and busy streets of Naxos.
We had a nice balcony to our room, it was very nice to relax with a bottle of wine/beer at night when the temperatures drop a bit. Overall, my wife and I are very pleased with the accommodations and the friendliness of the entire staff. We would definitely come back to the same place again when we visit Naxos again.