Xaghra is in Gozo.
Pronounced Shara, this village is centrally located on the island and a good spot to use as a base. Firstly because it's an attractive village in itself, it houses the Ġgantija temples, and is 5 minute drive or a 30 minute walk to both Ramla i Hamra beach and Rabat, so if you don't have too much time to explore the island this is a good place.
There are some busses from Rabat, a taxi from the ferry terminal at Mgarr should set you back 13-15 Euros; from Rabat, a bit less.
There is no public transport inside the village, only to and from it. As it's quite small everything is pretty much within walking distance, allow 15 minutes from one edge of town to the other (going from the hotel to the temple for instance).
Them main square has a number of good restaurants and cafes including;