Palermo

The FT advises, "If you’re planning a lengthy and luxurious stay [in Palermo], head for the Hotel Villa Igiea, a monument to Belle Epoque Palermo. It has a glorious terrace and garden overlooking the port." Located a little ways from the city centre.  The attached FT articles provide excellent tips on visiting Palermo.  In one, the FT's travel editor, Rahul Jacob, goes so far as to call "enchanting" Palermo his favourite city in Europe.