I stayed in a place called Bitez, just a few miles from Bodrum, the hotel (Hotel Ambrosia 4*) was lovely and very reasonable.
The weather was also scorching, 40deg +!!
The only thing that put me off was the people in the restaurants were quite pushy to try and get you in, although i now hear its illegal for them to hastle you and if they get caught can loose their licences.
I would definatly go back again for a cheap break, but not for a few years after i've experienced other places.
Heres a few snaps of the hotel/area.
R