One of the finest places we stayed in while in Italy was the centrally located Palazzo Abagnale in Sorrento. All rooms in the historic building were recently remodeled with a modern look. We were lucky enough to get the third floor with a balcony overlooking the main street and the Christmas parade. Our friends' rooms on the backside had a view of a private courtyard. The highlight was the incredible breakfast. Elio brightened every morning with an array of Italian coffees, food and cheerful demeanor. He truly made us feel as if it were our new Italian home.
Palazzo Abagnale, 164 Corso Italia, Sorrento; 011-39-081-807-5555, http://www.palazzoabagnale.com. Doubles from about $137.