Can't remember the name of the place I stayed but is in the area already recommended. When I was there there were 4 or 5 reasonable hotels overlooking the water which AIR were around 40-50 US/night. Went to a nearby hotel which had a dining room on a terrace overlooking the water and had an assortment of mezzes and wine for a pittance - they were really good!

Also be very careful of pickpockets - it is an art there - my friend was "caught" in the middle of a (staged) fight and later found he was missing quite a lot of money from a variety of pockets! I was lucky - I was caught in the same melee but I guess I didn't look like as good a target (and I wasn't) so got away with just a minor scare. It wasn't much fun to be surrounded by a bunch of fighting men. OTOH I found the men who asked me multile times each day to buy a carpet more annoying in general. I guess the first 50 no's didn't count - but that was done in a much more friendly spirit!

This is really a place to use those undergarment belts, etc. Don't mean to scare you off - it is a very interesting place with some GREAT food that can be had for very reasonable prices and in some locations with unbeatable views.