Palazzotto Residence & Winery: A Time Capsule in the Heart of Matera

| Tue, 05/05/2026 - 07:30
Dining in the heart of Matera at Il Palazzotto
Table setting at Palazzotto / Photo courtesy of Palazzotto Residence & Winery

Ed.: The Inspired Stays series highlights hotels we love around Italy. Each property is independently reviewed by an Italy Magazine writer, who is generally hosted on a complimentary basis. Our contributors do not accept compensation or gifts in exchange for specific types of coverage. We only showcase properties we would genuinely recommend overall.

Why we love it 

To understand Matera, you have to see its prehistoric Sassi (cave dwellings). At Palazzotto Residence & Winery, you can even live in them — but with 21st-century comforts.

What to expect

Checking in at Il Palazzotto
Checking in at Palazzotto / Photo courtesy of Palazzotto

At the center of Matera’s Sassi, this 10-room boutique hotel is a cozy place to relax between sightseeing. It’s best for couples, small groups and solo travelers who can appreciate the historical setting within the UNESCO World Heritage Site, where stairs and dead ends are part of the adventure.  

Background

After a renovation of a series of caves that date back 10,000 years, the hotel opened in 2016 along with its onsite wine cellar. It’s part of the small and independent D'Angelo Family Collection, along with the Palazzo Zimara in Puglia and Villa Mojana in Lake Como. 

Location, location, location

The hotel is ideally located for hiking among the multi-level houses, courtyards, churches, gardens, artists’ studios and restaurants made of the area’s signature limestone (seen all over Basilicata and Puglia and locally called tufo). Though taxis and buses can drop guests off near the hotel, which is on the bottom level of the Sassi, the area is closed to cars (other than residents), and parking for guests is only in the modern town, easiest with a paid lot combined with shuttle service. Wandering the layer-cake of stone at night is romantic, but be aware that the walkways themselves aren’t well-lit. 

Where you’ll sleep

Sleeping inside the Sassi di Matera
A typical room / Photo courtesy of Palazzotto

Earth tones sit alongside white linens and dramatic tufo vaulted ceilings in the cave rooms and suites, while the light fixtures add a simple, modern elegance. The fact that there was only a large glass door on our room’s entrance made for a dark and restful place to sleep. Details like water troughs from the 17th century reimagined as luxurious sinks, and a round-the-clock dehumidifying system, ensure comfort. If you prefer gazing onto the Sassi rather than sleeping inside them, there’s also a superior room with three small balconies overlooking the iconic caves, a better option for those with claustrophobia or who need a lot of natural light. Note that even with the extensive dehumidifying system, cave rooms are still underground, and a certain level of humidity is a given. 

Dining & drinks

Breakfast is served subterranean on a large communal wooden table, or on an outdoor terrace with a view over the city in warmer months. The hearty spread includes locally made cheese, focaccia and eggs, along with sweet options. Though the owners’ Radino Wine Bistrot is offsite, you can enjoy a wine tasting or aperitivo from the on-site cantina, either outside in the warmer months or beside the fireplace in winter. The hotel is within a 15-minute walk of dozens of dining options, either in the Sassi or the medieval and modern parts of the city above.

Service notes

No complaints here — staff at this four-star property are friendly and well-informed. 

Family perks

A dedicated apartment is available for families, and is the only part of the property that is also pet friendly. 

Accessibility

  • The hotel requires stairs and is not a good choice for guests with limited mobility.

Features & amenities

  • Unconventional city setting
  • Bar
  • Free WiFi
  • Paid parking
  • Rooftop terrace
  • Family friendly

Contacts

Palazzotto Residence & Winery 
Via Sette Dolori 39, Matera
Tel. +39 0835334519

Location