Except for the wifi going out for awhile, this hotel exceeded all my expectations. Just don't expect a standing shower. They have huge tubs with a handheld hose, but you know what? After the initial "where's the shower?", you realize how easy it is to use the handheld thing. I'm used to smaller hotel rooms when in Italy, and this was a huge space with a balcony. There were deck chairs and a table. I'll be headed back there as soon as I can.
Want a million dollar view for way way less? This is the place to go. It's not too high above the beach, and not so close that you'll hear noise at night. It's just about perfect. Wake up every morning to see the boats cascade across the sparkling water, and at night, sit on the balcony and get lost in the lights of Positano.
At the front desk, Margherita is super friendly and happy to help with restaurant suggestions and local tips (like walking to Fornillo beach a few minutes away).
Stay here and your only regret will be that you can't stay longer. Also, keep an eye out for the enormous lemons.