Named for the Greek historian Diodorus, the three-story hotel is nestled on a cliffside surrounded by beautiful gardens overlooking the Bay of Naxos. Even the parking lot is lush with trees and plantings. Views of Mount Etna from the hotel's terraces are stunning, and are the reason many guests choose to stay here. Guests enter into an expansive, elegant lobby with wood floors, soft yellow walls, high ceilings, huge columns, ornate moldings, and brass chandeliers. Period chairs atop rich rugs provide seating in the lobby for guests. A similarly antique vibe runs through the hotel's restaurant as well, and there are two bars on site for guests to grab a drink and soak up the views. One of the few hotels in the area that's open year-round, Villa Diodoro is popular with tour groups and couples, though some families stay here as well.

The hotel is situated next to the town's communal gardens and is a short, hilly walk from the historical center of Taormina. The ancient Greek Amphitheater, a top attraction in the area, is less than 10 minutes from the hotel on foot. Corso Umberto is the lively main strip in town that's filled with great restaurants and shops -- it's a photo-worthy little street that's about eight minutes away on foot, and there are excellent Mt. Etna views if followed to the end (a 25-minute walk from the hotel). Bus stops are also close by, as is the train station. The hotel's sister property, Hotel Caparena and Wellness Club at Taormina Beach, is 15 minutes away, and a hotel shuttle bus provides transportation for a fee. The Catania Airport is about an hour from the hotel by car, while Palermo takes over three hours to reach by car.

At first glance, rooms here are classically impressive -- decor includes wood floors, handsome antique furnishings, soft yellow walls, and ornate molding. Upon closer inspection, though, these rooms are fairly simple, and details like the bland landscape art, patterned bedspreads and matching headboard panels, and brass bow-tie light fixtures just look dated rather than antique. Walls are mostly bare. All rooms include air-conditioning, satellite flat-screen TVs, and safes. Bathrooms are small but clean, and offer shower/tub combos, hairdryers, makeup mirrors, bidets, and toiletries. Balconies have views of the gardens or sea -- it's worth paying extra for the sea view rooms. 

The on-site Diodoro Restaurant serves Mediterranean and international cuisine using local ingredients in a grand, elegant setting with soft yellow tablecloths, wood floors, huge columns, and ornate period molding. Windows look out onto the gardens and to the sea. A free breakfast with hot and cold options including eggs is available. Overall, food is mediocre, and there are also two bars serving drinks and light fare -- one by the pool and the other inside. The outdoor pool, open in warmer months, is a lovely space with incredible views of the sea and Mount Etna. Lounge chairs plus red and white umbrellas allow for poolside relaxing, and the pool also is suitable for swimming laps. A small fitness center has the requisite equipment and large windows with views of the gardens, while an on-site spa has two treatment rooms for massage, facials, and body treatments. Indoor and outdoor events space is suitable for social and business gatherings and can accommodate up to 800 people. There is no Wi-Fi in guest rooms, and the Wi-Fi in the lobby comes with fees and is unreliable.