Concierge.com's insider take:
There are scores of "Vathy"s in the islands (it means "deep"), but this one is Ithaca's port and capital. Here you'll find a pale-blue traditional building designed by the German architect Ernst Schiller in 1811—it's the area's newest and most unusual hotel. Not to be confused with the German-based ArtHotel chain, Tsimaras is a three-hotel, family-owned operation with a great deal of style (its properties include the Emelisse Art Hotel on Cephalonia). The open-sided entrance terrace is made from village stone, downlights add to the atmosphere. Inside, there's a stark white Marrakech-meets–Clockwork Orange lounge, and 19 charming rooms and suites with white walls and furniture, pleasantly patterned bedspreads, drapes, and lampshades; it's all a few cuts above the narrow pine bed and whitewashed poured concrete that's standard in the islands. There's room service till midnight, which you might not need, seeing as you're in the port with its alternative dining options.