The Palazzo Dragoni Hotel in Spoleto is an excellent hotel.  If you are taking a trip to Spoleto you must stay here.  The location is perfect, very near the cathedral.  Our room was quite large.  The views from the Dragoni are beautiful.  You look out over the town from most of the rooms.  Everything was very clean and the staff very friendly.  The breakfast was good.  The dining room has a particularly nice view.  The hotel is furnished in antiques or so we were told.

The only two negatives were that the Palazzo Dragoni was hard to find and it is quite far from town.