The Excelsior Palace Hotel in Taormina is one of my favorite hotels.  There are beautiful views from the hotel.  Our room was large and had a very nice bathroom.  Our room also had a balcony which was very nice and we had a view of the sea.  Some of the rooms look out on Mt. Etna which is also a beautiful view.  You have to ask for a room with a view if you want to be sure to get one.  There is an American style bar with a wonderful view of Mt. Etna.  The staff is very friendly and helpful.  The pool is a nice amenity.  I would not have thought we would use it but it is actually very relaxing to take a dip at the end of the day.  There is plenty of shopping close by and lots of great restaurants.  We ate one night at the hotel and decided it was not worth going back again because the restaurants in town were so much better.