Where to Stay in Capri: Best Areas & Hotels by Budget

Capri operates at a price point that is higher than almost anywhere else in Italy. The island is small (about 10 square kilometres), famous, and subject to enormous day-tripper pressure - the ferry from Naples or Sorrento disgorges thousands of visitors daily in summer, all of whom concentrate in Capri Town and the Blue Grotto queue. Staying overnight is the main way to experience the island on a different register: the mornings before 10am, when the piazzetta is quiet and the light over the Faraglioni is exceptional, and the evenings after 6pm, when the day-trippers have left on the last ferries and the island returns to something closer to its actual character.

Capri Town

The main town of the island, reached by funicular from the port at Marina Grande (8 minutes, approximately €2 each way as of 2026). Capri Town is centred on the small Piazza Umberto I (known universally as the “piazzetta”) - a square ringed by expensive café terraces, watch shops, and luxury fashion brands. Beyond the piazzetta, the streets are genuinely atmospheric: the Via Krupp zigzags down to the sea through terraced gardens, the Gardens of Augustus have views to the Faraglioni, and the walk to the Arco Naturale takes about 45 minutes through maquis-covered hillside.

Pros: The widest selection of hotels on the island. Walking distance to the main sights including the Gardens of Augustus, Via Krupp, and the path to the Arco Naturale. The best restaurant selection on Capri. The funicular to the port is fast and convenient for ferry connections.

Cons: Expensive - the most expensive area on the island. Very busy from 10am to 6pm during summer when the day-tripper ferries arrive. The piazzetta fashion-boutique atmosphere is not for everyone.

Budget (€130–200/night): Budget accommodation is difficult to find in Capri Town. Small guesthouses and B&Bs on the quieter streets away from the piazzetta. The Hotel Bougainville (Via Sopramonte 11): a small hotel in a residential street above the main tourist zone; doubles from approximately €140/night as of 2026. Simple rooms, no pool, honest value for the island.

Mid-range (€220–450/night): The Villa Brunella (Via Tragara 24): a family-run hotel with a pool and sweeping views from the terrace, positioned on the quiet Via Tragara that leads to the Faraglioni overlook - one of the best walks on the island starts from the end of this road. Doubles from approximately €280/night as of 2026. Hotel La Palma (Via Vittorio Emanuele 39): Capri’s oldest hotel (opened 1822), refurbished in 2022 with a pool and a central position near the piazzetta; doubles from approximately €300/night.

Luxury (€500–2,000+/night): The Grand Hotel Quisisana (Via Camerelle 2): the historic anchor of Capri luxury, a 150-room hotel with three restaurants, two pools, a spa, and the most central position on the island; doubles from approximately €600/night as of 2026, suites well beyond that. The Capri Tiberio Palace (Via Croce 11): a more boutique luxury option with an excellent rooftop pool and bar, positioned on the quiet end of the main shopping street; doubles from approximately €500/night.

Anacapri

The upper town on the western end of the island, reached by bus from Marina Grande or Capri Town (approximately 15–20 minutes, buses run frequently). Anacapri is quieter, less tourist-oriented, and noticeably less expensive than Capri Town. The chairlift to Monte Solaro (589 metres, one-way approximately €8 as of 2026) departs from the central piazza. Villa San Michele - the extraordinary home of Swedish physician Axel Munthe, now a museum - is here, open daily, entry approximately €8 as of 2026.

Pros: Quieter and more local than Capri Town. Lower prices for equivalent accommodation quality. The Monte Solaro chairlift is the best easy activity on the island. Villa San Michele is worth a visit independently. The Blue Grotto is marginally closer from Anacapri (short bus ride to the port).

Cons: Requires a bus or taxi to reach the port and the Capri Town restaurants. Less walking variety directly from the town. Some visitors find it slightly dull in the evenings.

Budget (€100–160/night): Smaller guesthouses and B&Bs on the streets around Piazza Vittoria. Albergo Loreley (Via Orlandi 16): a simple but reliable guesthouse in the centre of Anacapri; doubles from approximately €110/night as of 2026. Well placed for the chairlift and Villa San Michele.

Mid-range (€180–380/night): The Hotel Caesar Augustus (Via Orlandi 4): the defining property in Anacapri - dramatically positioned on a 1000-year-old villa site with a terrace that drops straight down to the sea far below, giving views across the Gulf of Naples and to Vesuvius. The view from the terrace at sunset is one of the great visual experiences in Italy. Doubles from approximately €280/night as of 2026. Pool, restaurant, and very good service. The Hotel San Michele di Anacapri (Via Orlandi 1): a four-star with a pool and garden, quieter and simpler than Caesar Augustus; doubles from approximately €180/night.

Luxury (€400–900/night): The Capri Palace Jumeirah (Via Capodimonte 2b): an internationally managed five-star with two pools, a Michelin-starred restaurant, an outstanding spa, and the highest production values on the island; doubles from approximately €550/night as of 2026. This is the Anacapri answer to Quisisana - equally expensive but quieter and with better facilities.

Marina Grande (Port Area)

The port itself has limited accommodation - mostly used by travellers arriving on late ferries or leaving on early ones, not as a primary base.

Budget (€100–150/night): A handful of small hotels and guesthouses around the port. The Hotel Belvedere e Tre Re (Via Marina Grande): a historic property on the port; doubles from approximately €110/night as of 2026. Functional rather than atmospheric, but convenient for ferries.

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Plan your trip:

• Browse boat tours and island experiences on Capri
• Book a hydrofoil or ferry transfer to Capri
• Get travel insurance before you book
• Pick up an eSIM for Italy
• Search hotels in Capri on Booking.com

Booking and practical tips

• Book the luxury hotels very early. Grand Hotel Quisisana and Capri Tiberio Palace fill 4–6 months ahead for July and August. Caesar Augustus in Anacapri books nearly as fast. If you have specific luxury properties in mind, January booking for summer is not excessive.
• The island is very quiet outside May–October. Many hotels and restaurants close entirely from November to March. If you visit in April or early May, check your hotel’s opening date - some open only from Easter, others from 1 May.
• The Blue Grotto: plan carefully. The Blue Grotto (Grotta Azzurra) is the island’s most famous attraction - a sea cave lit by refracted blue light. Entry is by rowboat from a small port on the northwest of the island; entry approximately €14 as of 2026 (plus the rowboat surcharge). It closes in rough weather and is overrun with tour groups from 10am to noon. Going by private boat from Marina Grande, arriving before the ferries, is the better approach.
• No cars in the main town. Capri Town and Anacapri are pedestrianised in their centres. Taxis are small open-sided cars on fixed routes; fares are set and displayed at the taxi rank. A taxi from Marina Grande to Capri Town runs approximately €12–15 as of 2026.
• Luggage to hotels: Most hotels arrange porterage from the funicular or bus stop. Confirm this when booking - arriving with rolling luggage in the stepped streets of Capri Town without a plan is awkward.

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For the full Capri planning picture: our Capri travel guide covers the Faraglioni walk, the Blue Grotto, Villa Jovis (Tiberius’s villa on the eastern tip), and the best swimming coves accessible by water taxi. For a comparison with Positano and the mainland coast: the Positano hotels guide and Sorrento hotels guide cover the main alternatives.

Ready to Plan Your Trip?

See our itineraries for inspiration:

• Amalfi Coast Itinerary - five days on the Costiera Amalfitana
• Southern Italy Itinerary - ten days from Naples to Sicily
• 10-Day Family Italy Itinerary - ten days through Rome, the Amalfi Coast, Florence, and Lake Garda
• 3 Weeks in Italy - the north-to-south grand tour from Milan to Sicily