This is a great location right across the road from St. George's beach and a few minutes walk to the downtown area, with a nice little balcony facing the beach (though you're overlooking a parking lot).
The wind will blow dirt/dust into your room during the day if you leave the balcony doors and curtain open, but there's a handy screen door that you can close to help prevent this.
Our room smelled a strongly of smoke when we first arrived (it was supposed to be a non-smoking room), but the host helped us remove the couch cushions which seem to have absorbed most of the smell, and by the second day we didn't notice any odor.
Bear in mind that this is a two-star hotel, so as long as you're not expecting white-glove service and don't need a pool, you'll be comfortable here: the room is nice enough to relax in during the evening, and otherwise the location makes it super comfortable just go back and forth between the beach and the town. I'd stay here again and recommend it to any budget travelers coming to Naxos.