I spent five nights recently at Surriento Suites in Sorrento and it's very much a Rick Steves-type place to stay, although not in the guidebook. Location is at Marina Piccola, so if you arrive by ferry, it is mere steps away from the dock. There are three rooms, two regular size and one suite. We had the suite just because it was all that was available when I booked, but peeking into the other rooms when they were being cleaned, they seemed ample. We had two beds and a little kitchen area with sink, mini-fridge and some basic supplies, enabling us to put together some tasty little wine-cheese-fruit meals. There are no balconies but the rooms have big windows looking out over the Bay of Naples and Vesuvius. Breakfast is provided by a restaurant on the first floor of the building and it is the typical juice, coffee and pastry. The private bath for our suite was unusual in that it was down a flight of marble stair, but huge and clean. There were tons of towels and we were encouraged to help ourselves to more in a storage chest in the room. Everything was bright and spotlessly clean. The owner is a lovely and charming young woman, just a pleasure to deal with. The location means you do have to either climb 100+ steps or use the lift (1 euro) to reach Sorrento Town, but we liked being a little removed from the hustle and bustle there. I wouldn't hesitate to stay there again.
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