We spent one week here for our honeymoon, and we were pleased. The location is very, very good, just a little up from the main shopping street, Corso Umberto. So it was central, but quiet. (And also the coffee for breakfast is excellent)
It was easy to get to the cable car to the beach, but we opted for renting a scooter, which can also be done near by. We had a scooter for three days, and loved the beach at Mazzeo/Letojanni, as this has deeper water and more waves than the closest beaches. We also took the scooter to Etna and to small villages higher up.
The one thing not so good about the hotel must be the price of food and drinks, even at the pool bar it was much higher than the rest of Taormina - and Taormina is not a cheap place to begin with...
I would not recommend this hotel for people travelling with small children, as there is no children's pool or play area. But for couples, adults and couples with older children (11+) it is a very good option.