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Hotels in Positano

Will be in Positano in June 2016 for 4 nights and can't decide whether to splurge and stay at Covo dei saranceni , or keep my money for a few good nights out and stay at Villa Rosa or Hotel California? Any advice?

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Hotel California is the only one of the three that we list in our guidebook as a recommendation. It's on the upper part of the town, so you have to walk down to the waterfront, but the higher ground means it has gorgeous vistas. Here's how Rick describes the Hotel California:
Albergo California has 15 spacious rooms (all with lofty views), a grand terrace draped with vines, and full breakfasts. The Cinque family--including Maria, Bronx-born son John, and grandchildren Giuseppe and Maria--will welcome you.
Although we don't list Covo dei Saranceni in our guidebooks, I notice it is in a convenient location right on the water with the Marina Grande beachfront right outside your door, so could be good if you are looking to splurge. Personally, since I don't spend too much time in my hotel room anyhow, I would save the money and use it on a great meal, for excursions in the area, or for shopping around Positano. That said, I know the comfort of splurging time to time. Everyone looks for something different in a vacation so it's up to you what kind of experience you're looking for. Positano is beautiful, I don't think you'll go wrong.