A fabulous location near sights and restaurants, free shuttle service to Ephesus, and charming boutique style make this hotel an excellent choice. Its spacious terrace overlooks the St. John Basilica next door (and a stork nest in season) and is also the setting for the hearty set dinners each evening. Some rooms have balconies, and all have Turkish carpets and colorful kilim (rugs) or ceramics hanging on the walls—the owners also run a carpet shop next door.
Be sure to ask for a room with a view – it's worth the small premium you'll pay. If they're full, try Nilya Hotel, the owners' new, slightly pricier boutique hotel a 5-minute walk away.