Set on the tiny volcanic island of Panarea, the Terrazza offers characteristic rooms with sea view terrace. Boats from Lipari arrive at San Pietro Dock, a 5-minute walk away. All soundproofed rooms at the family-run La Terrazza provide air conditioning and a minibar. Each room is furnished in white and Mediterranean blue, with traditional tiled floors. A buffet breakfast is available daily, and includes fresh fruit, cheeses and croissants. The restaurant specialises in Argentinian grilled meats, and also serves fish dishes. Panarea is virtually a traffic-free island, with transport provided by electric taxis. Boats can be hired at the docks, and the nearest sandy beaches are a 20-minute walk away.