Cavaliere Palace Hotel, Spoleto

The neighborhood location of this hotel leads you to feel that you are a resident, not a tourist staying at a large resort. The restaurant is very good, lovely house wine, etc., but there are wonderful trattorias all around. Across the street is a tobacconist and down the block to the square are two good gelato/coffee bars. You can walk to all attractions in Spoleto from the front entrance to the hotel on ancient cobblestone streets, never having the spell broken by major car routes (uphill direction!)