• 19th-century property renovated in 2014
  • Gorgeous, individually decorated rooms with well-equipped kitchens
  • Variety of one-, two-, and three-bedroom units available
  • Furnished terraces offer barbecue facilities and stunning views over the bay
  • Close to delightful grocery store and excellent fruit stand
  • Parking is conveniently located across the street (rare in Positano)
  • Wi-Fi is free and available throughout the property
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  • Somewhat removed from the beach and town center
  • No restaurant, pool, gym, or spa facilities on-site
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Bottom Line

Completely renovated in 2014, this historic, 19th-century hotel is a well-decorated, three-pearl property with seven apartment-style units. Room are beautiful and equipped with kitchens, but the best part are the views from furnished terraces of the sea and colorful buildings of Positano. Unfortunately, there are no restaurant, pool, or wellness facilities on-site. Overall, it's a great base for exploring Positano and the Amalfi Coast, though the number of stairs, or, alternatively, long walks, involved might be challenging for those with mobility issues and without cars. Those who are looking to spend most of their time on the beach might find a waterfront property more convenient -- the Covo Dei Saraceni is along the beach and has more amenities. 

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Oyster Hotel Review

Palazzo Margherita


Historic, hilltop apartment-style hotel with bright and cheery feel 

The apartment-style Palazzo Margherita is bright and cheery from the outset with its sun-yellow 19th-century facade and window boxes, though it's been modernized with a renovation in 2014. It opened in 1885 as the town's first hotel back when Positano was a fishing village. Location was key though: for Europeans on their Grand Tour, having a place to stay between Sorrento and Amalfi proved popular. In 2000, the larger property was converted into the seven apartments it's now comprised of. Although a lack of features precludes the property from being a destination in and of itself, what it does offer is exceptional. Most guests staying here are vacationing groups of friends or couples looking for a place to act as a base while exploring Positano or the Amalfi Coast. 

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Great base for exploring Positano, but be prepared to walk 

Located on a main road -- though not the one that goes through Positano -- the hotel is rather on the street that goes through the top of the town. The benefit is the amazing views you get from the property, particularly those from the back of the town cascading down the hillside. 

That being said, that means that things are a bit of a walk, and here, that involves stairs. The town's main beach, Marina Grande, is about 10 to 15 minutes away via flights of stairs, or a bit longer going down the roads (a smaller beach, Fornillo, is a short walk farther). Those who aren't keen or are unable to walk can use the bus route with a stop just outside the hotel. There's a grocery store just down the road at about a two- to three-minute walk, selling vegetables, meat, sandwiches, and wine, plus an excellent fruit stand is near the store. Positano's town center is about six minutes by car. 

A bit farther afield is the famous Isle of Capri, which guests can catch ferries to at the Positano ferry dock. Amalfi is about 45 minutes by bus or 40 by car; Ravello is about an hour by car or an hour and 40 by bus; and Sorrento is an hour by bus or 40 minutes by car. A car proves ideal for getting to and from the airport, however: Naples International Airport is about an hour and a half by car, but quite far by transit at about three hours and 45 minutes to four hours and 15 minutes. 

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Mix of traditional decor and Old-World luxury

The property's seven charming apartment-style rooms are individually decorated and furnished with antiques, giving units an atmosphere of Old-World luxury. Located across four floors, they come in one-, two-, and three-bedroom units that are all spacious: think generous seating and dining areas furnished traditionally and beautifully (some of the blue-and-white Vietri majolica tiled floors are truly stunning). Rooms are also all well-lit, thanks to large windows/glass doors framed by floor-to-ceiling drapes and high-vaulted ceilings. The best part, however, are the furnished terraces in all rooms: the views are unbeatable, even from under the retractable awnings or vine-covered trellises, and some have barbecue facilities.

The in-unit kitchen or kitchenette is equipped with an espresso machine, dishwasher, and washer/dryer units, as well as necessary cutlery and crockery. Each room has a laptop-compatible safe, satellite TV with DVD player, and iPod docking station. Rooms are cleaned every three days, though towels are changed daily. Bathrooms are gorgeous, with marble and tile under a large chandelier, soaking tubs, and rainfall showerheads. Hotel-brand toiletries are included in the rooms, and although the selection is a little basic, the quality is good. 

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Low on features, but free Wi-Fi 

The lack of features -- no restaurant, pool, gym, or spa -- prevents the property from achieving a higher pearl rating, but keeping in mind that it's apartment-style, it's at the top of its game. Free Wi-Fi is available throughout the property, and parking is conveniently across the street.  

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Best Rates


  • Air Conditioner

  • Airport Transportation

  • Balcony / Terrace / Patio

  • Cabanas

  • Cable

  • Concierge

  • Cribs

  • Full Kitchen

  • Internet

  • Kids Allowed

  • Mini Bar (with liquor)

  • Poolside Drink Service

  • Separate Bedroom / Living Room Space

  • Swim-Up Bar

Disclaimer: This content was accurate at the time the hotel was reviewed. Please check our partner sites when booking to verify that details are still correct.