Palazzo Caracciolo Naples: Affordable Luxury Hotel under $200/night
Looking for an affordable luxury hotel in Naples? Palazzo Caracciolo is a stunning restored 17th-century palace in the heart of the city—and it won't break the bank! When I visited WAY back in June 2022, I paid ~$168/night, and current rates hover around $140-180/night depending on the season. For a historic hotel with this much character, charm, and amenities, that's a steal.
Whether you're a solo traveler, couple, or group, this Naples accommodation offers the perfect blend of history, luxury, and accessibility. Keep reading to see why Palazzo Caracciolo should be on your list.
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Location & Accessibility: The hotel sits in one of Naples' oldest and most central neighborhoods, steps from the Central Train Station and all the major city attractions. It's perfectly positioned for exploring the city on foot or via public transport. If you're looking for a centrally located Naples hotel, this is it.
The Soul of the Palace: What makes Palazzo Caracciolo special isn't just the luxury—it's the history. The building dates back to 1309 when King Charles II of Anjou donated it to the Caracciolo family. It was later home to Joachim Murat before his coronation as King of Naples in 1808. After careful restoration completed in 2009, the hotel honors its historical roots while offering modern comfort.
The centerpiece is the stunning monumental staircase, adorned with majolica tiles featuring designs inspired by Neapolitan mythology and artisanal traditions. Every detail—from the tiles to the room design—draws inspiration from Naples' nature, history, and handcraft heritage.
Why I Love This Hotel: Here's the thing: European hotels love twin beds. I absolutely refuse them. There is a ZERO percent chance you’ll catch me in a twin bed EVER (and don’t get me started on full size). Palazzo Caracciolo GETS it—they have proper queen beds, which means you can actually stretch out and sleep like a normal human. It's the small things that make a difference when you're traveling solo.
The cloister is also a bit of a hidden gem. It's a peaceful, relaxing courtyard that feels like stepping back in time—the perfect escape from the bustling city. Also the perfect place for a nightcap!
Wellness & Amenities: The hotel offers a full spa and gym, though I didn't get to experience them during my one-night stay. If wellness is a priority, they offer:
Turkish bath, Sauna, Jacuzzi & more
Wellness experiences starting at €15 for guests
Full gym with modern equipment
Sustainability: Palazzo Caracciolo is committed to responsible tourism. The hotel implements eco-friendly practices including energy-efficient systems, water conservation, sustainable cleaning products, and locally sourced ingredients. It holds multiple third-party sustainability certifications—a great choice for those of us who actually care about our planet!
The Bottom Line: For under $200/night, you're getting a piece of Neapolitan history with modern comfort, a prime location, and genuine character. It's the kind of affordable luxury Naples hotel that makes you feel like you're staying somewhere special—because you are.
Want to see a room tour? Somehow I seem to have lost all the content I filmed in the hotel so all I have is this amateur reel on Instagram from the early days, but you’re welcome to see the very poorly filmed room tour here - I promise that my photography and filming only gets WAY better with time.
If this fits the bill of what you’re looking for in a Naples hotel, you can check the rates & book here.
