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Mykonos Hotels and Ferry Service to Santorini--need suggestions!

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Please offer suggestions for Mykonos town hotels! There are so many!! I like Cavo Tagoo which is at the top of our budget ($500 US). I'd like a hotel within walking distance to many shops and restaurants. We will be there for only 2 nights before going on to santorini which leads to second question: the ferry service. What experience does anyone have with any of the companies? Is it safe to expect late departures all the time?!
Thanks for any and all suggestions!!

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