Arkasa Bay Hotel

Folded into the hillside above Arkasa's fishing harbour on Karpathos's southwest coast, Arkasa Bay Hotel steps down toward the Aegean in terraces, putting balconies at every level between the pool deck and the sea. The village's tavernas and small shingle beach lie a short walk below, making this a quiet base for couples and divers rather than families chasing nightlife.

Rooms keep kitchenettes and soundproofing, useful given the terrace bar's evening trade. Bicycle and car rental at the front desk make Finiki's harbour and Lefkos beach easy half-day trips west along the coast road.