Il Nido Hotel

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Sorrento is an interesting little tourist town, which though beautiful, is overrun by the type of tourists who don't like to partake of any local culture.
Nevertheless, Sorrento's plus points outweigh the bad; it is a quaint little town, with excellent (and cheap) access to towns along the coast of the Bay of Naples, including Naples itself, Pompeii and Herculaneum. As the Amalfi coast is only a bus journey away, there is plenty to do in the area, while successfully avoiding the charming chaos of Naples.
Hotel Il Nido is a lovely hotel located on the peninsula above Sorrento proper. Its location provides excellent views of the entire Bay of Naples, including Mount Vesuvius and the islands. Be sure to ask for a sea-view room. A free bus service into both town and to the train station is provided at certain times of day (inc. morning and afternoon), while the late night collection service ensures that you rarely have to use taxis.
The breakfast is good, with the usual continental fare which is regularly replenished, and seating is available on the dining room balcony, which affords the same views as mentioned above.
The staff are friendly, and the guests are varied, both in origin and age.
I'd recommend this hotel to anyone, and would definitely stay there again. September proved to be a good time for visiting this area, as the weather was just right (usually 20-25 degrees) and prices were reasonable.