Cavallo is an idyllic and beautiful island. Unfortunately the hotel is no longer run in a first class way and I could not in good conscience recommend staying here (especially at these prices).
For example, there is a ferry that takes you to the island. We called the hotel bc we were 3 mins late (after a 17 hour flight from California that wasn't so bad). The hotel assured us they would contact the ferry and make sure they would wait those three minutes. The ferry said no one ever contacted them, they left without us, and the hotel charged us 150 euro to get to the island. This was not a pleasant introduction, but it represented the overall service level of the hotel.
This hotel seems like it would have been a dream when it opened 26 years ago, but it is badly in need of a refresh and remodeling - everything from the furniture, to the paint is crumbling, and the quality of customer service has gone down hill. I would not recommend coming until the place has experienced new management. Messages to the front desk manager, Isabella, simply went unanswered.