Sea and town interact in Positano, and you see this best from the Covo dei Saraceni, perched on the main beach at the foot of Monte Comune, just steps from the pier. Modern, charming, and increasingly luxe, this large hotel has a rooftop with a pool and Jacuzzi as well as a restaurant set over the sea (nonresidents can also dine here). The crisp and cool lobby is built around a curved staircase, and the Savino restaurant's glass-walled dining area is overhung with bougainvillea vines. Guest rooms are simple but stylized, with wrought-iron balconies; the one true suite and the many "junior" suites are ultradeluxe and spacious, with whirlpools, larger terraces, and fanciful furnishings. The major plus here is the absolutely blissful location—you'd need to stay on a yacht to get any nearer the bay.