Located in a relatively quiet location while still close to the main Taormina action. Prices are reasonable by Taormina standards, and they do offer packages -- but expect to pay a pretty penny during high season when they often require a 3-night stay.
This truly is a villa Siciliana -- an old Taormina residence furnished with charming antiques, a lovely terrace with sweeping view, and surrounded by a garden full of indigenous flowering plants. Rooms are spacious, the beds are more comfortable than most Italian inns, and a few rooms come with a small terrace (ask for one when you book the reservation).
The owners are remarkably attentive and go out of their way to ensure you have a memorable stay. Be sure to take breakfast on the terrace, and enjoy some sunning and a dip in the Jacuzzi in the warmer months.