This is the place to stay in Taormina. Absolutely wonderful for families. Yes Taormina is touristy but it does not take away from its charm. We stayed two weeks and explored the town plus did day trips to mount etna and Vulcano island. You can definately use Taormina as a base. I would recommend having a car. We are a family of 4 with teenagers. They loved hanging at the pool and trips down to the beach. The town is in walking distance. Groceries are really expensive so we went out of town once to Catania and once to Milazzo that is where the big centers are for shopping. There is also one in Naxos but we did not go there. I cooked a lot and all the amenities are available in the kitchen. Absolutely a five star stay. Teresa is a wonderful and knowledgeable host. Thank you!