Between Positano and Ravello, a handful of small hotels are terraced directly into the limestone cliffs, close enough to the drop that the Tyrrhenian Sea seems to start at your balcony rail.
These properties are built the way the coast itself is built — in switchbacks and staircases, room by room down a cliff face wrapped in bougainvillea and lemon terraces. Because the road arrives at the top, many hotels run a private lift or a long stone stairway down to their own sun deck and swimming platform, so ask about the descent before you book if stairs are a concern.
Rooms are usually small and simply finished with handmade majolica tile floors and iron balconies, because the view is the real amenity: sheer blue water, fishing boats, and at night the lit-up towns strung along the coastline like a necklace. A rooftop or terrace restaurant is often the best table on the property, worth booking for dinner even if you eat elsewhere the rest of the trip.
Reserve a sea-facing room rather than the cheaper garden or hillside category — on a coast this narrow, the difference in outlook is enormous — and travel light, since porters still carry bags down real steps at most of these places.