Well I'm just back from Kusadasi and I was staying at Dias hotel.
The hotel is really nice. It has everything what you need: clean rooms, friendly stuff, the pool (not very big, but ok). Breakfast is pretty much the same every day, but the dinner is absolutly fantastic!
It's located in the Dzuma pazar street (friday market area), just few minutes drom the centrum. Many markets, restourants around.
The stuff of the hotel is amazing. One guy (Hylmi, not sure if I write it right, sorry) knows Serbian language so good, I was very suprised. The owner and the guys are really great, I will miss them.
So...If I forgot something, please ask.