I couldn't have picked a better place in Taormina. It had a wall of patio windows that face the sea with mainland Italy in the distance, the castle and surrounding hills, and Taormina below. From the balcony I could see the village of Castelmola above. I discovered many trails to get to town, one of my favourites started across the street, and another around the corner to reach the village above.
Down the end of the street one can also get a bird's eye view of the entire coastline and Mount Etna at a shrine called Madonna della Roca. There are also buses that stop a few metres away that go up or down to both villages and the owner has left all the practical information you might need in a neat clearly marked folder.
Magical place. Highly recommend.