Overnight in Paleokastritsa
Paleokastritsa is a larger place with several bays and its own port. There is a large selection of privately run accommodation as well as some hotels.
The 4-star hotel "Akrotiri Beach" has a spectacular location on a headland at the entrance to the town, but is no longer brand new but noticeably "partially renovated" (brand new pool, nice rooms, bathroom a bit older, link: Akrotiri Beach).
Very close to the Hotel Akrotiri Beach, however, there are numerous worthwhile restaurants and the bar "La Grotta", which is located in a rock grotto (Link: The Cave).