Let me start by saying this is a great hotel - very clean and well maintained, friendly staff and spectacular views. My only knock is it's location relative to Piazza Tasso (town center) and the train/bus station. It is a 20 - 25 minute walk or a 20 - 25 euro taxi fare. City bus service is unrelieable at best.

Sorrento is a great town to base yourself and explore the other beautiful towns on the Amalfi coast - so location is important if this is your plan.

I spent 4 nights at the Hotel Corallo during first week of September, 2012.
It was beautiful! Everything I had envisioned from reviewing their website and photos.
I selected this hotel for the location and views of the Mediterranean. It is built right on the cliffs above the sea. No swimming pool but easy access via elevator/stone walking path to the public beach below the cliffs. I stayed in room 562 and paid $326.00 USD per night. A bedroom suite with Queen bed (2 small terraces with table/chairs off each side of the main bedroom), Italian furnishings complete with 2-3 foot candlesticks (candles provided), built in room armoire, fully tiled bathroom complete with double sinks, jetted tub/shower with large window looking out over the sea below and a large separate sitting/sunroom with sofa, chairs, tables and mini fridge/bar. However, the best part of this room was the LARGE terrace off the sitting room!!! 2 chaise lounges, chairs and tables with amazing 360 degree views of mountains above, streets below, coastal views (great at night!) and total views out to the Mediterranean sea. Amazing sunsets from this terrace...the sun drops like a ball of fire into the sea. The Historical Hotel in Saint Agnello Sorrento is about a 15 minute walk to the main marina and shopping/eating district. I was traveling alone and felt very safe on the streets day or night. My room safe was not working. Though I did ensure all monies/valuables by taking these to the 24 X 7 front desk/hotel safe. Nice continental breakfast was included every morning in the indoor/outdoor terrace dining room. The Hotel will arrange any excursions desired including pick up from Naples airport; approx ~$100.00 USD. I did have hotel arrange a day trip to Pompeii and Vesuvius...a great day! When in the main town/shopping district I highly recommend eating at the Fudoro Bar off the main plaza. Great food, wine, people watching.

We stayed at the this hotel on our honeymoon, on August of 2012. The view is amazing, you just can't get any better, all the common spaces and exterior spaces are great, because you are on this powerfull cliff with nothing ahead. We went to Sorrento, Positano and Capri, but still the best view was at the hotel. Also, the bedrooms had a balcony over the sea, where you can have breakfast or chill out. Everything was perfect, except for the bedroom itself and the bathroom (room 124), because both are very old fashioned and wared out, it really needs an urgent makeover. When we arrived (at night) we were VERY disappointed with the bedroom, because it didn't matched the pics on the site at all. We even looked for the site again to see if it was our mistake, but no...there isn't a single pic in the site with a room like the one we had....very old. In the morning tough, we decided that the amazing view was worth the sacrifice. If i ever go back to Sorrento i'll stay at the Corallo again for sure, but this time i'll make sure i'm renting a room like the ones they advertise.

We had our wedding reception here and stayed a few days before. View is amazing as it the food. The rooms are nice and clean with lovely big showers, breakfast has a really good selection and you can sit on the terrace with a view of the gulf of Naples. The staff and service are what make the stay and set this hotel apart from others of the same star rating.
Sant Agnello is a great place with lots of reasonably priced restaurants without having to go into Sorrento - but you can walk within 20 mins which is probably best as the buses aren't that regular.
Would definitely come back.