Where to Stay in Capri, Italy: 4 Best Areas & Hotels

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Planning a trip to Capri and wondering where to stay? We’ve got you covered!

Capri may be a small island, but it’s mighty in terms of views, glamour, and charm. A trip here is truly a bucket-list destination, as it’s notoriously upmarket and often a place for special occasions or luxury travelers.

But after visiting Capri ourselves, we realized the island has several distinct areas, each with its own vibe, making where you stay an important choice. From the luxury center of Capri Town to the quiet hills of Anacapri, and the romantic vibe of Marina Piccola or the convenience of Marina Grande, this guide breaks it all down for you, including our favorite hotel picks!

Overview of the Best Areas to Stay in Capri

Capri is one of those destinations that feels straight out of a movie. With slow-moving days, dramatic cliffs, and sparkling blue water, it’s hard not to sink into its beauty. But, despite the ambiance that makes you want to relax, it can get busy during peak season, so it’s essential to reserve hotels and activities in advance. Most travelers come here for a night or two, but if you’re lucky enough to spend more time, you’ll be in for a treat. 

Once you catch the ferry from Naples, Sorrento, or the Amalfi Coast, you can land in one of the four main areas we recommend: Capri Town, Marina Grande, Anacapri, or Marina Piccola. The island is car-free to visitors, but you can get around using the funicular, which connects Marina Grande to Capri Town, or buses and taxis. The island is quite hilly, so if you plan on walking, be sure to pack some good shoes!

• Capri Town – Best for luxury travelers & first-timers – Capri Town perfectly balances Old Italy charm, luxury shopping and dining, nightlife, and easy access to the rest of the island. La Residenza Capri is a smart choice for those who want to be in the heart of the city, but still have a high-end stay.

• Anacapri – Best for scenic views & a quiet stay – If a quiet stay is what you’re after, Anacapri boasts tranquil streets and hilltop views. We recommend Hotel San Michele, which overlooks the Bay of Naples and is ultra charming. 

• Marina Grande – Best for convenience & a short stay – Marina Grande is perfect for jetsetters or those looking to spend more time on the water than on the island, while still being able to access Capri Town easily. Hotel Belvedere e Tre Re offers beach access and sea views, without breaking the bank.

• Marina Piccola – Best for couples & beach lovers – Honeymooners, couples, or tranquil travelers will love the vibe of Marina Piccola, with the best beaches, cliff views, and a relaxed atmosphere. Hotel Weber Ambassador overlooks the Faraglioni Rocks and Marina Piccola Bay for a memorable stay. 

Where to Stay in Capri

Capri Town

BEST FOR LUXURY TRAVELERS & FIRST-TIMERS

Pros

• Lively atmosphere, close to top dining, shopping, and sightseeing
• Easy to access the rest of the island via funicular, buses, and taxis
• Largest selection of luxury hotel options

Cons

• Can feel overcrowded and busy during the day
• Less peaceful and relaxing than other areas
• Prices tend to be higher

Capri Town is the heart of the island and the center of the luxury Capri experience that many travelers picture when they plan their trip. At its core is Piazza Umberto I, usually just called the Piazzetta — a small but iconic square, where you can lounge around with an espresso in the afternoon and an aperitvo in the evening. 

This is where you’ll find the top designer boutiques, luxury shopping, trendy cafes, and Michelin-starred restaurants, making it ideal for luxury travelers or first-time visitors who want to be in the center of activity. Capri Town is also where you can find the best nightlife, with lively bars and late dinners that stretch well into the evening. 

From a practical standpoint, Capri Town is one of the most convenient bases on the island. The funicular connects it directly to Marina Grande, and buses and taxis make it easy to reach Anacapri, Marina Piccola, and other sights.

Top attractions nearby include the Gardens of Augustus, Via Krupp, and the historic Certosa di San Giacomo. While Capri Town has been a glamorous retreat since Roman times, today it remains firmly upscale. It’s vibrant, beautiful, and unforgettable, but also the most expensive area to stay, with very few budget-friendly options.

Palazzo M Capri – $$$$

For the most high-end option in Capri, Palazzo M Capri is an easy pick. Situated just a few steps from the Piazzetta, you will be seconds from top shopping and dining options. But what really stands out is the service, as the staff help you coordinate everything even before you get on the island. 

The rooms here speak for themselves, with sea views and balconies that make you want to sip espresso with the sunrise in the mornings. Many of the rooms offer spas on the terrace as well, which is the ultimate relaxation! You can also enjoy the fitness center, room service, and on-site bar.

Prices range from €550 to €1,000+ per night during peak season. Visiting during shoulder season will let you stay here at about half the price!

Read the 5-star reviews and book this luxury stay here!

Hotel Syrene is a well-loved luxury hotel option, which is a great alternative if Palazzo M Capri is all booked up. With a range of room options, sea views, and a pool that will be hard to leave, this hotel is a fantastic choice!

We also love Pazziella, a luxury hotel situated in the hear to Capri. It overlooks gardens and lemon groves, and offers upscale rooms, service, and private pools. 

La Residenza Capri – $$$

La Residenza Capri is our top pick in Capri, as it perfectly balances luxury, location, and price! Travelers rave about the location, just off the main square but tucked away on a quieter street, keeping you out of the hustle and bustle of day trippers. There really are no bad views here; rooms overlook the sea or the Gardens of Augusta, or you can relax on the terrace with a pool. 

They offer a range of rooms, from deluxe and superior doubles to suites, all with plush bedding and modern design. You can enjoy dinner at the restaurant, then be within the Piazzetta in a few minutes for an after-dinner drink – perfecto!

You can book a room for around €330 during shoulder season and from €700-€1,000+ during peak season. 

Don’t wait to book – La Residenza Capri fills up quickly! Book it here!

Albergo La Prora is another fantastic option in Capri Town, and is a bit more budget-friendly than La Residenza. Set atop a hill, the views are hard to beat, and you can enjoy them from the veranda during the summer. 

For something more upscale, Villa Certosa Boutique Hotel Capri is a 5-star hotel in the heart of Capri Town. It is the definition of luxury, from its architecture and design, to the top-rated restaurant, and raving traveler reviews. 

Hotel La Tosca – $$

For something a bit more budget-friendly, Hotel La Tosca in Capri Town checks all the boxes. Rooms are simple, but homey, and the staff go the extra mile to meet all of your needs. This charming stay is less than a five-minute walk from the Piazzetta, so it’s convenient but removed enough to make for a relaxing stay.

What really stands out, though, is the rooftop sun terrace! Imagine enjoying breakfast overlooking the old buildings of Capri Town, the rolling hills, and the sea in the distance – pure bliss.

You can book a room for €130-€200 per night during shoulder season, and for around €280-€400 during peak season, which isn’t too bad for how nice an option this is!

Check prices and availability, then book your stay at Hotel La Tosca here!

If Hotel La Tosca is all booked up, Hotel Esperia is another budget-friendly option nearby. We love that this is a family-run hotel, offering a quaint charm that’s not often found in Capri, and still provides everything you need for a comfortable stay.

Anacapri

BEST FOR SCENIC VIEWS & A QUIET STAY

Pros

• Quiet and relaxed atmosphere, great for a tranquil getaway
• It has more of a local feel than over-touristed
• Better value for hotels and restaurants

Cons

• Requires bus transport to reach Marina Grande or Capri
• Not as lively in the evenings
• Less of a luxury feel

Anacapri is the second most popular town on Capri, offering a noticeably calmer and more laid-back alternative to Capri Town. Located higher on the island, it enjoys cooler breezes, panoramic views, and a more residential feel, making it especially appealing to travelers who want a slower pace or a more local experience.

This area is well suited to repeat visitors, couples, and slow travelers who value scenery and atmosphere over nightlife and designer shopping. Hotels here tend to be more spacious and better value than in Capri Town, and evenings are quiet and relaxed rather than buzzy.

Anacapri is also home to some of the island’s most memorable sights. Mount Solaro, reached by chairlift or hiking trail, offers the highest viewpoint on Capri with sweeping panoramas over the Bay of Naples. Villa San Michele is a grand and historic mansion, famous for its gardens and views. The historic Phoenician Steps connect Anacapri to Marina Grande and provide a glimpse into the island’s ancient past.

Despite its peaceful feel, Anacapri is still well connected by bus to Capri Town and the port. It’s a scenic, understated base that shows a quieter, more authentic side of Capri.

Hotel Orsa Maggiore – $$$

Situated on a hilltop in Anacapri, Hotel Orsa Maggiore invites you to settle into tranquility and relaxation. Here, you can take in the most incredible sweeping views of the island and the Tyrrhenian sea, surrounded by a beautiful hotel comprised of manicured gardens, an infinity pool, and little details that set this place apart. 

Rooms are spacious, and many offer a terrace and sea views. Travelers frequently rave about the staff and their attentiveness, which really makes a difference in a hotel experience! There is a shuttle to and from Capri or the Port, and you can walk into Anacapri from the hotel. 

Prices start around €400 per night, making this an affordable luxury option in Capri. 

Check availability and reserve this luxury Anacapri hotel here!

Jumeirah Capri Palace is a larger luxury hotel with a wellness feel to it, including an award-winning spa, two pools, and four restaurants. It even includes its own art museum on-site!

If you’d rather be close to Anacapri center, Boutique Hotel Casa Mariantonia is a lovely high-end option near the Church of San Michele. It’s a historic hotel, offering seaviews and a relaxing atmosphere. 

Hotel San Michele – $$

We love Hotel San Michele because it feels like a luxury hotel in Anacapri, but comes with a mid-range price tag. Set on a hilltop near Vila San Michele, it’s an outdoor and tranquil escape. Imagine gazing at the Bay of Naples as you swim in the pool or sip on a cocktail on the terrace. 

You can often catch live music at La Lanterna Verde bar or enjoy panoramic views from the restaurant. There is a range of room options, but the highlight is the queen rooms with a spa bath (with a view, of course!). This is the kind of place where you want to chill out and take it slow, rather than rushing off to sightsee all day.

Rooms go for €160 to €350, depending on season or availability. 

Read the glowing reviews and book your stay at Hotel San Michele here!

For something more centrally located, Bougainville Luxury Boutique Hotel offers a comfortable stay in the heart of Anacapri. We especially love the rooftop bar and the iconic Capri design. 

Hotel Villa Ceselle is another great pick if Hotel San Michele isn’t available. It puts you right next to the Piazza Caprile and the Monte Solaro cable car, plus the villa is charming and quaint!

Hotel Al Mulino – $

You don’t have to spend your entire travel budget to stay on Capri. Hotel Al Mulino in Anacapri offers budget-friendly rooms, supreme comfort, and a lovely location in the countryside, overlooking olive groves and lemon trees. 

Rooms are simple, but comfortable and spotlessly clean. The hotel is a restored farmhouse, so this is truly one of the most unique stays on Capri. The family-run atmosphere creates a relaxed vibe, and they are great at arranging tours or giving local recommendations. 

You can enjoy the onsite pool, daily breakfast (with homemade treats, yum!), and shuttle service for convenience and ease. Prices range from €125 to €240 per night. 

Book your stay at Hotel Al Mulino here, before it fills up!

Hotel Bussola is another budget-friendly hotel nearby, in case Hotel Al Mulino is booked out. Just a 10-minute walk from Anacapri’s center, the location is ideal, and the hotel itself is the perfect place to rest after a day of exploring. 

Hotel Senaria is located in the heart of Anacapri, making for an ultra-convenient spot to stay. It is top-rated and comfortable, but still a good price for budget-conscious travelers!

Marina Grande

BEST FOR CONVENIENCE & A SHORT STAY

Pros

• Quick access to beaches and boat tours
• Ideal for short stays and convenient ferry access
• Less hilly than the rest of the island

Cons

• Not the most charming or scenic area
• Can be quite crowded during peak ferry times
• Fewer restaurants and nightlife options

Marina Grande is Capri’s main port and ferry terminal, and it’s where nearly all visitors arrive when traveling from Naples or Sorrento. Staying here is all about convenience and accessibility — it’s the flattest area on the island, making it an easy choice for travelers who want to avoid steep hills, stairs, or transporting luggage uphill

This area is best suited for short stays of one or two nights, early ferry departures, or travelers who plan to spend most of their time on the water. Being right at the harbor means quick access to boat tours around the island, private charters, and water taxis to nearby coves and beaches.

Marina Grande has a lively daytime atmosphere due to ferry arrivals and departures, with waterfront cafés, casual restaurants, and a small beach just steps from the port. The views across the Bay of Naples are beautiful, especially in the morning, but the area lacks the charm, polish, and nightlife found in Capri Town or the residential character of Anacapri.

From Marina Grande, the funicular provides a direct link to Capri Town, and buses make it easy to reach Anacapri and Marina Piccola. While it’s not the most scenic place to stay overnight, Marina Grande is practical, well-connected, and ideal for travelers prioritizing ease and efficiency over atmosphere.

Villa Marina Capri – $$$

Villa Marina Capri is the place to stay if you are looking for luxury and convenience, along with incredible views of the Bay of Naples. This hotel is polished and pristine, offering modern design and amenities. 

While it’s located just a few steps from the main marina, it feels like a retreat once you step on the grounds. The wellness center is top-rated and offers a range of treatments, or you can enjoy the pool, restaurant, and bar. We especially love the sea-facing rooms with a terrace. Can it get any more relaxing?

Best of all, you’re just a five-minute walk to the funicular, making it easy to access Capri Town or the Marina. 

Room prices range from €600 to €1,000+, depending on the room option and time of year. 

Don’t miss out – reserve your room at Villa Marina Capri here!

If our top luxury option is all booked up, check out the Luxury Villa Excelsior Parco. It offers the same high-end amenities and charm, beautiful views, and a serene escape near Marina Grande.

Hotel Belvedere e Tre Re – $$

For a moderate budget stay in Marina Grande, Hotel Belvedere e Tre Re is an excellent option. It’s great if you’re in Capri for one or two nights, as it has easy access to the port, making boat tours and ferry trips a breeze. 

The hotel itself is quaint and charming, offering simple yet comfortable rooms. But the most important part is that you can still enjoy sea views from rooms and beachfront access. Staying here makes sense for budget-conscious travelers who enjoy the water, rather than historic charm. 

Prices average around €100-€200 during shoulder season, and €200-€400 a night during peak season. 

Check availability and book your stay here!

If Hotel Belevedere e Tre Re is all full, Relais Maresca Luxury Small Hotel is a lovely alternative closeby. It’s more on the luxury end of hotels, but it’s a stunning spot to stay!

Villa Patrizi – $

Villa Patrizi is your home away from home in Marina Grande. It’s well situated between Capri Town and Marina Grande, making it possible to enjoy the benefits of both locations. You can walk to Marina Grande in about six minutes, or pop up to Capri for dinner and sunset views. 

Since this is a guesthouse, it has more of a smaller, intimate feel. You can get to know the hosts and learn the local spots to explore, as well as enjoy the hospitality. Rooms are quaint but cozy, some offer great seaviews. Breakfast is a standout, great to fuel up before hitting the water for a day of exploration. 

Rooms range from €120 to €280 per night, making this an affordable stay on Capri. 

Check rates and reviews, then book your stay at Villa Patrizi here!

Marina Piccola

BEST FOR COUPLES & BEACH LOVERS

Pros

• The most scenic and romantic area of Capri
• Views of the stunning Faraglioni rocks
• Excellent access to the best beach clubs and swimming spots

Cons

• Very hilly and has lots of stairs
• Limited transportation, dining, and nightlife options
• Hotels tend to be more expensive and limited

Marina Piccola offers a completely different side of Capri, with a slower, more tranquil atmosphere that feels worlds away from the buzz of Capri Town. Located on the southern side of the island, this area is especially popular with couples and honeymooners who want privacy, scenery, and easy access to the sea.

The area is known for its upscale, low-key feel. Hotels here tend to be boutique and luxury-leaning, and while nightlife is limited, Capri Town is still within easy reach by bus or taxi for dinners or evening drinks. Days in Marina Piccola revolve around swimming, sunbathing, and soaking in the views rather than sightseeing or shopping.

One of Marina Piccola’s biggest draws is its proximity to the island’s best beaches and swimming spots. Marina Piccola Beach is one of Capri’s most popular for clear water and calm conditions, while nearby coves offer quieter spots to swim. The area also boasts stunning views of the Faraglioni rock formations, one of Capri’s most iconic landmarks, as well as Scoglio delle Sirene and several well-known beach clubs.

Peaceful, scenic, and romantic, Marina Piccola is ideal for travelers who want a relaxing stay centered around the water, with just enough access to Capri Town when they want it. Hotels are more limited here, so if you see something you like, don’t wait to reserve it. 

Hotel Della Piccola Marina – $$$

Sitting just above Marina Piccola, Hotel Della Piccola Marina offers luxury, views, and a great location. You can access the Piazzetta in Capri in about a 10-minute walk, or make your way down to Marina Piccola to enjoy the beach and swimming in crystal clear water. 

This is the kind of place you come back to time and time again. It balances upscale amenities, comfort, and an attentive staff with a relaxed and serene atmosphere. The seaviews are unmatched, whether from the pool or your room. The hotel offers a gym, Turkish bath, massages, and a delicious breakfast, so you’re never without. 

Hotel Della Piccola Marina is ideal for couples or honeymooners who want the tranquility of Marina Piccola, while still enjoying the options of Capri Town. Rooms average around €600-€800 per night, but can be lower during shoulder seasons. 

Check the glowing reviews and book this stay here!

Hotel Weber Ambassador – $$

Hotel Weber Ambassador is a 4-star hotel that checks all the boxes of a Marina Piccola stay. This hotel is perched on the side of the hill, giving those iconic views of the sea and Faraglioni rocks. There are stairs that lead directly down to the beach from the hotel, so you can easily access the stunning blue water.

The rooms are spacious, clean, and simple, making for a cozy place to rest and recharge before heading out into the sun again. We especially love that there are two pools on-site, so it never feels busy. And since this area doesn’t have a lot of dining or nightlife options, the hotel excels in its international cuisine, focusing on fresh seafood, as well as hosting two bars. 

Prices range from €200 to €350 per night, which is quite affordable for the high-luxury feel of this hotel. 

Check your travel dates and secure a room at Hotel Weber Ambassador here!

Essence One by Sweet Capri – $

Ready to sink into Marina Piccola’s relaxed atmosphere? Essence One is a quaint boutique hotel, offering charming rooms and incredible views. Marina Piccola Bay is a quick 10-minute walk away, making the top beaches easily accessible. 

From the hotel, you can enjoy views of the distant rock formations. The hotel offers a terrace and garden, which make this an easy place to unwind. This is a rather simple hotel, so while there isn’t a restaurant or bar as in some of the other larger hotels, it’s great for a budget-friendly stay in the area.

You’re a short walk from Capri town as well, or you can catch a bus to access the rest of the island easily. Rooms are €220 on average, but can get below 100 during shoulder season.

Check dates and book your stay at Essence One in advance here!

Top Activities to do in Capri

Capri is unique because each area has a distinct character. It’s suitable for a range of travelers, but still very accessible to get around the island. So while you’re here, add a few of these top activities to your itinerary to get the entire Capri experience!

• Relax on a private boat tour – Escape the crowds and see Capri’s beauty on this private boat tour. We love that you can customize this experience, so either take it slow and enjoy a relaxing day on the water, or opt to visit the iconic Blue Grotto and enjoy the day at your own pace.

• Take a Sunset cruise – One of the best views of Capri can be seen on this sunset cruise. Imagine watching the sun dip below the horizon with shimmering blue water around, snacks and drinks, and the stunning island in the background. It’s picture perfect!

• Explore caves on a kayak tour – Looking for some adventure? This kayak tour takes you to explore the coves, grottos, and rock formations from Marina Piccola. It includes epic views, historic tales, and just enough excitement!

• Take a cooking class – Enjoy Capri’s iconic dishes in a unique way: this hands-on cooking class! We love cooking classes as they take you deeper into the culture and local history of the area, in a super delicious way. 

Related Read: Not sure how to fit it all in? Our 2-day Capri itinerary shows you exactly how to plan your days for the perfect balance of sightseeing and downtime.

Renting a Car in Italy

Renting a car in Italy is one of the best ways to explore the country beyond the cities—think charming Tuscan villages, dramatic Amalfi Coast drives, and hidden gems in the countryside. While Italy’s roads can be a little chaotic (especially in cities), with the right preparation, renting a car here can be an unforgettable and rewarding experience!

We always use Discover Cars when booking our rentals, and highly recommend them. They compare dozens of providers to find you the best rates, include important filters like “automatic transmission,” and offer affordable full insurance coverage. For more info, you can read our in-depth Discover Cars review here.

Tips for Renting a Car in Italy

• Drive on the right: Italians drive on the right-hand side of the road and overtake on the left. Right turns on red are illegal, and you must often yield to vehicles coming from the right at intersections.
• Stay alert and confident: Italian driving can feel aggressive in cities—expect assertive drivers, scooters weaving through traffic, and liberal horn use (often just a form of communication). Stay calm and practice defensive driving.
• Insurance is a must: We highly recommend adding full coverage insurance when booking. Minor damage like scratches and dents is common, especially in cities, and Discover Cars’ full protection gives you peace of mind at a low cost!
• Mind the ZTL zones: Many city centers have restricted traffic zones called ZTLs. Entering without a permit can result in a fine. Check with your hotel and use GPS with ZTL alerts.
• Choose the right vehicle: Roads in Italy can be narrow and parking tight, so a compact car is usually best. Most rentals are manual, but if you need an automatic, you can easily filter for one when booking with Discover Cars. 

What You Need to Rent a Car in Italy

• A valid driver’s license from your home country.
• If you’re from outside the EU, you’ll likely need an International Driving Permit (IDP).
• A credit card in the driver’s name is typically required for the security deposit.
• You must be at least 18 years old, but renters under 25 may incur a young driver surcharge.

Ready to hit the road? Book your car with Discover Cars here and discover the freedom of exploring Italy on your own terms!

Thanks for reading!

Choosing where to stay in Capri is an important part of planning your trip. While the island is small, each area has a completely different vibe, and picking the right base can truly shape your experience. But don’t stress—between Capri Town, Anacapri, Marina Grande, and Marina Piccola, these handpicked areas and hotel recommendations make it easy to find a stay you’ll love.

If you need help planning the rest of your trip, be sure to check out all our Italy travel guides here. From detailed itineraries to top activities and more where-to-stay guides, we’ve got everything you need to plan an unforgettable getaway. Or check out some of our favorites below to get started right now!

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