San Domenico Palace Hotel, Taormina, Sicily, Italy
Carved into a rocky hillside in the centre of Taormina, and housed in a former 15th-century Dominican monastery, San Domenico Palace commands a stunning perch above the coast. Multiple terraces; four restaurants (one with two Michelin stars); perpetually blooming gardens of jasmine, orange blossom and roses; and a refurbished pool area all feature glittering Ionian Sea vistas.
The classic façade and soaring ceilings have been lovingly preserved, and many guestrooms come with private terraces (the Garden Suites being the most coveted, set in the former monastery, with private dipping pools and views of the ancient Greek Amphitheatre and towering Mount Etna).