The 2nd option was an easy pick as the reason why we are going to Santorini is to enjoy the view. As such, the hotel must be on the cliff, and more importantly, have unblocked views of the Aegean Sea. Naturally, these views do not come cheap.
After scouring through potential hotels on TripAdvisor, we decided on Mirabo Luxury Villas. The hotel is located in Firostefani, outskirts of Fira, but still 5-10mins walk from the throngs of people in Fira. There's only 3 rooms in the hotel - the honeymoon suite, the apartment, and the studio. We could only afford the studio (126 Eur per night, non-refundable rate).
Our other picks include:
1) Reverie Traditional Apartments - Rated #1 on TA. Did not have views of the caldera from the rooms.
2) Smaro Studios - Free welcome pack & mini bar on arrival. Breakfast is inclusive. 5 mins to bus stop #7.
3) Sunset Hotel - Read from reviews that the quality & size of the rooms are not consistent. Breakfast is inclusive.
4) Alizea Villa - 90 Eur per night, but it has a "budget" feel.
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[Post trip update]
Absolutely did not regret picking Mirabo for its location. However when we got there, we realized alternative options 1, 2 & 3 are actually within close vicinity. Option 1 faces the road so there's no view of the caldera from the rooms. options 2 & 3 are just next door to Mirabo. Not sure if all rooms have windows facing the caldera. If they do, then perhaps, with the free breakfast, they will be better options.
You can read my Tripadvisor review of Mirabo here.
