This is very worrying indeed. I have just read the reports on tripadvisor and this incident seems similar to the one we experienced at the sister hotel Mitsis Rodos Village about 6 years ago. The fire alarms did not work on that occasion either, and the evacuation process left much to be desired. We were only alerted by other guests banging on the doors and shouting, and some people were trapped on their balconies by the smoke in the corridors. It was a terrifying experience and spoiled our holiday. Fortunately the only major casualty was someone who the fire brigade dropped a ladder on and broke their arm, but it could have been so much worse.
We were with Direct Holidays and they assured us they would look into the matter. Obviously nothing has been done about the poor procedures in place at these hotels, and I would certainly not stay in either again. Greece is in the EU, you would think that certain safety standards would have to be kept, if not then it's about time the tour operators put some pressure on, before there is a tragedy.

Linda