Concierge.com's insider take:
For charm on a budget, look to Villa Cheta Elite by the tiny bay of Acquafredda. It occupies a Liberty-style (Italian Art Nouveau) villa in pleasant, bougainvillea-shaded gardens just above the coast road. For once, the half-board requirement is not an imposition: the restaurant, which features gourmet fare such as swordfish and chickpea soup, is good enough to pull in outsiders. Horseback riding, boat trips, and yoga classes are available for an additional charge.