My wife and I stayed at Hotel Splanzia for four nights. For starters, the location is perfect if you want easy access (a few blocks away) to the waterfront tourist area but also would like to escape it all for a decent night's rest. If you want absolute, suburban quiet, however, I don't recommend staying ANYWHERE in Hania. However, Splanzia (the neighborhood and the hotel) is much quieter than the waterfront. There are reasonable, good restaurants on the same street, as well as a bakery, a convenience kiosk and a small grocery, which sells fresh fruit.
What is really apparent is that the folks that run Splanzia really care about their guest's lodging experience; as such, the service is outstanding (Breakfast in the shady courtyard is absolutely fantastic and really adds to the value of this hotel.), and the entire hotel is very, very clean and tidy and the spacious rooms have excellent air conditioning.
As a bonus, they offer free wi-fi, and I never had a problem connecting to it from my room, the lobby, the courtyard or the rooftop terrace using my handheld.
In the end, if our travels take us back to Hania, we will definitely stay at Hotel Splanzia.