There are quite a lot of cafe bars/restaurants within the vicinity of the hotel.

On the same street is the Nag's Head pub which offers some good meals at great prices although mostly European with some Mexican meals in the menu there are also some local Cyprus dishes of Beef Stifado, Lamb Kleftiko and Moussaka. It offers snacks and burgers too and apparently a very good 3 course lunch on Sunday. I found the menu here (a pdf file) http://www.the-nagshead-pub.com/static/docs/NagsheadPub_menu.pdf

From the main road turning left will take you towards McDonald's, a small funfair and just past that some new cafe bars and if you continue walking to the traffic lights and turn left, you will find 2 places very popular with the locals (one is on the left and is a typical Cypriot cafe which offers eat in or takeaway). We made up our own meze there one afternoon just by choosing different bits from the menu and sharing them between 3 of us. On the opposite side, if I recall correctly - it's called Rio Bravo and is generally busy in the evening.

If you turn right when you reach the main road from your hotel you will find plenty of places within walking distance as you head towards the main tourist area of Potamos Germasoyia including KFC (but behind it a couple of streets and along to the right is the Syrian restaurant which gets brilliant reviews). Most of the bars are along this road and a few clubs, which will be busy Friday to Sunday night but quieter in the week.