The best thing about Psalidi is that its 5 mins on the bus to Kos Town. We stayed in the excellent Platanista Hotel on the mini-motorway between Psalidi and the town. I would highly recommend the hotel, brilliant food, excellent accomodation. If you can forget about the surrounding area ( as we did) youll have a great time.
( watch out for the wingeing Brits who complain about the excellent " foreign" food whilst wearing England football tops and shorts for dinner....... go to Blackpool !! )