Belmond Grand Hotel Timeo
On a princely perch overlooking the town, the Greek theater, and the bay, this truly grand hotel, Taormina's oldest, wears a graceful patina that suggests la dolce vita, with a splash of Baroque and a dash of Mediterranean design in the lobby, which has tile- and brickwork walls and vaulted ceilings. Fine linens and drapes, Oriental rugs, and gilt-framed prints decorate the rooms, which all have balconies or terraces—many with a panoramic outlook. A meal at the restaurant or a drink on the terrace also comes with one of Italy's most memorable vistas.