Its a nice hotel, yes the rooms are a bit small and basic but there is a good chance of a side on sea view.
Location wise its great, rite on the beach and just a small two min walk up the hill into Scala.
When we visited no one seemed to use the restaurant in the evening or indeed the bar, shame really as both were well situated. To be honest we were guilty of this too as we didn't want to eat/ drink in solitude.
The only real downside to the place was the fact that the owner actively encouraged people who were not staying at the hotel to use the pool and sunbeds, Given the fact that not many hotels in the village have pools you had to be sure to get down early to get a spot! We thought we had paid allot of money to have to fight it out for beds with people who were staying in far cheaper accommodation up the road.
We would definitely go back to Skala but would probably stay at the nine musses hotel next time.
The island is beautiful and well worth driving around.
Scala is a cracking little place with great places to eat and drink.
Hope this helps ? feel free to ask any more specific questions.