I have visited this hotel but did not spend the night. It is only a short walk from the Bay but it is about a 20 minute walk from the historical center and a lot of other activities in Chania. It is owned by a local family so the service is not all "corporate greed" oriented. There is an outdoor courtyard for al fresco dining and the rooms start at 70 Euros although they can get significantly more expensive. The rooms are clean and range from the smallish, but definitely adequate to the very lavish. There is a lot of marble and fancy decorations, circular staircases, etc. in this lovely hotel.
Was not built as a hotel but as a consulate building.