Bodrum
The town itself wraps around a castle and two harbours, with the marina, the bars and most of the restaurants within walking distance of each other. It works well without a car and has the best evening life on the peninsula. The town beach, though, is small and functional — the good swimming is out in the surrounding bays, which is where most of the hotel stock actually sits.
Marina, castle, nightlife and ferry connections.
The town beach is modest; the good swimming is out in the bays.