Perched at 300 metres above sea level on Anacapri's western ridge, where the cliff edge drops almost vertically into the Tyrrhenian Sea, the building that became Hotel Caesar Augustus began its life as a private aristocratic villa in the early twentieth century — its cantilevered terraces and ochre-washed arched facades engineered to make the most of one of the most dramatically positioned sites in all of southern Italy. The view west toward the Faraglioni and the Gulf of Naples, with the silhouette of Ischia visible at the horizon, frames every public space and most of the hotel's 55 rooms and suites with an orientation that no amount of interior design could improve upon. The interiors take a sensibly restrained approach to that competition, layering cream travertine tile floors, white-painted classical columns, and wrought-iron bed frames with antique walnut secretaires and Oriental rugs to produce an atmosphere closer to a well-inherited private house than a designed hotel. The arched windows visible in the guest rooms — some of them full-height, their linen drapes tied back to frame the Tyrrhenian sunset — echo the arcaded loggia that steps down the cliff face in a series of terraced salons furnished with striped upholstery and terracotta urns of clipped box. The pool terrace, set against stone paving with yellow sun loungers and cobalt parasols, extends the property's southward gaze toward open water, while the glass-and-timber dining pavilion, hung with pierced-metal lanterns, introduces a warmer, more intimate register as evening arrives.

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