We booked 2 rooms, one double and one single room. The double room was fair, although the sheets had some small dark spots (blood?) and the matrasses were very uncomfortable. After complaining, we got cover matrasses the next day.
The single room experience however, was a disaster. We have been travelling to Crete 16 times, 11 to Rethymno, and stayed at 6 different hotels. This hotel experience was by far the worst. The first day the hotel was over booked, so the single room person had to stay at another hotel next door. Back to Lefkoniko, we immediate spotted several bed bugs in the single room. First we tried to just remove the spotted bed bugs, but wake up with bed bug activity during the night and painful bites in the morning. The bed bug problem persisted for 2 days, we had to change rooms 3 times with no luggage transfer service, and had to cope with very unfriendly reception personnel that did not take the bed bug problem seriously despite pictures and recording of bed bug activity, claiming we were "hysteric". We finally got a single room at another hotel, and the unlucky single room person could finally get some sleep.
Rethymno is a great location and we will definitely come back, but never to this hotel.