If you take the bus in to Positano, you'll need to get off at Bar Nationale and walk 10 minutes down the hill to the hotel. If you're coming to/from Naples airport or train station, I'd highly recommend you splurge for car service. On our way in we did not, so we took a bus from Naples airport to the Naples train station where we got off at Pompeii Scavi to tour the ruins. The train station is just two minutes from the entrance and you can store your luggage at no charge. From there we got back on the train to Sorrento and then transferred to a bus to Positano, then walked down the hill to the hotel. Needless to say, quite a journey!! On the return, the hotel owner was able to get a car at the very last minute (thank you it was well worth it) for a reasonable rate. If there is one area to splurge, trust me this is it.
I travel fairly frequently and I found the family that runs this small hotel to be very nice and helpful and the rooms satisfactory. The rates are reasonable for Positano for sure. The location is quite a walk from the main area of Positano. They'll tell you it's just a short 10 minute walk, but I think they are used to the heat because it was a bit of a trek for us:-) I think in cooler months it would be fine, but June through September you'll sweat to death in the heat of the sun by the time you make the walk, so take the bus. I believe they run every 15 minutes and there is a bus stop very near to the hotel.
It was my mom and I on this trip, so we had requested two beds. The room was ready for us when we arrived on the second floor and with two beds like I had requested. They had brought in a twin roll up bed, as the bed in the room is a double and not split king like you see in many other rooms in Europe. It made things a bit tighter in terms of space, but it was much better than having to share a bed! The bathrooms are in desperate need of some shelving. We found it challenging to get ready without anywhere to set our curling irons, make up, etc.
The balcony in our second floor room was HUGE with the most amazing view you'll ever see. There are lovely potted flowers and grapes hanging from the arbor. It truly is lovely and really something you'll never forget...the horizon goes on endlessly. In the evenings a singer and musicians walk the streets and sing. They stop out front to perform and it is really a treat to take it all in from your balcony. There is an outdoor restaurant that also has amazing views where you can sit and enjoy breakfast, cocktails, lunch or dinner. By the way, the cappucinos at breakfast were the best ever!!!
The bed was comfy and I slept well. The one thing that was a nuisance during our stay was that the AC unit in our room kept dripping water on to the TV and floor and management had to come up twice to drain it. We had to keep towels out covering the floor and TV.
If you're a first time visitor to Positano, be sure to make to trip up to Ravello. It's beautiful! We wished we would have spent two nights there as well, but maybe next time. Also, we did a walking tour of Positano as soon as we arrived with Christine (http://www.discoverpositano.it/). It was helpful in getting the lay of the land the history on Positano. I highly recommend it.