Villa Ilias Caldera Hotel

While a far cry from the sleek, upscale accommodation that can be found further down the hill, the Villa Ilias Caldera Hotel provides a more familial and genuinely welcoming lodgings that are rooted in the history of the area. Villa Ilias Caldera has been run as a hotel since 1983, but the Damigos family has connections to the property going back generations: The present owner -- George -- even shares the name of the original forebear. Stepping inside, the vibe is unpretentious and welcoming, with the slightly rustic and homey feel of a family-run business complete with friendly staff and unpolished interiors. Marble stairs lead up the buildings three floors -- with no elevator -- while a pleasant shaded terrace dotted with colorful flowers makes a nice spot for an alfresco bite. The small pool area also provides a great vantage point for soaking up the sun and those spectacular views towards Fira and across the caldera.

The hotel is located just off the coast road that runs through Firostefani -- a pretty and relatively peaceful village just north of Fira. While there are a few charming little restaurants to explore in the immediate vicinity, the bustling Santorini capital is 10 to 15 minutes' walk away. Perched a thousand feet over the water, the setting also offers particularly expansive panoramic views over the iconic caldera. The property is around 15 minutes' drive from Santorini Airport and the main Athinios Port. 

The hotel offers a range of accommodation that includes Standard Rooms with caldera or side views, a studio apartment with a kitchen, and a luxury penthouse suite. Rooms also vary in decor and size (some bathrooms are tiny) but are clean and fairly modern with fridges, free Wi-Fi, and flat-screen TVs with some satellite channels and DVD players -- a small movie library is available at reception. While most afford spectacular views, some have partial side views or overlook the eastern side of the island. Not all rooms have private outdoor space. There is a traditional cave accommodation located downhill from the main building but it's not the finest example of its kind. The Ilias Monadikos Suite, however, provides a real taste of luxury with 360-degree panoramic rooftop terrace with private hot tub.

A buffet breakfast comprising mostly cereals, pastries, and fruit is served in the breakfast room each morning and included in the rate. The hotel's simple restaurant also offers room service and a menu of traditional Greek cooking and local wine in the evening with an alfresco option. The hotel's small pool provides a place to cool off and is lined with sun loungers -- though not enough for all guests -- as well as those breathtaking views. There's plenty of on-site parking free of charge and car and bike rental is available.