The two best features of this hotel are the location (overlooking Marina Piccola, with views of the Faragliani rocks) and the free shuttle service which transports you to Capri proper every ten minutes or so.
There were really only two negative aspects to the hotel. First, the tiny exercise room doubles as the hotel's unofficial baggage storage room (at least when I was there). The room was not locked or closely monitored, but the hotel seemed well enough staffed that I didn't worry about theft. Second, the breakfast buffet was wholly inedible. Had it been free, I might not have room to complain, but breakfast was something like 10 Euro.
Overally, I would certainly stay here again, but go into town for breakfast.