This 15th-century house, once a retreat for one of Rome's richest noble families, is one of the most intimate and luxurious hotels in Rome, with gorgeous terraces where you can watch the never-ending theater of the Scalinatella. Even the Hassler, Il Palazzetto's legendary sister hotel atop the steps, can't make this claim. Beyond the tiny reception, enormous red salons welcome you to the piano nobile of this Renaissance-era house, which now houses the red-on-red bar and restaurant of the International Wine Academy. Things get much more tranquil in the four guest rooms outfitted in soothing taupes and creams (three look out over the Steps); none have room service, but guests enjoy full use of the facilities at the Hassler. Without the 24-hour attention of the Hassler, and with their sense of privacy and independence, Il Palazzetto's rooms feel more like small, luxury apartments than a hotel — something that's seen as a major perk by guests, who tend to book up the rooms months in advance.