In article ,
Ken Blake wrote:

2. I highly recommend that whether you choose a hotel or a B&B that it
be in the town of Capri, not in Anacapri, Marina Grande, or Marina
Piccola. Capri is the most central, nicest, and has the best choices
of sights to see, restaurants, stores, etc. From Capri you can get to
Anacapri and Marina Piccola by bus (or on foot if you like long
walks), but a single trip to each of them is usually sufficient.

Thanks, that's interesting to know.

I first looked at staying near the Marina Grande so I wouldn't have to
deal with lugging the luggage up to the main towns.

I heard that Anacapri was less touristy and there seems to be more
family-run B&Bs there. Some very reasonably-priced choices too.

I like this one:

www.aiano.net

It's in the center of the island and looks to have spectacular views,
although it's not so close to the center of Capri town.

It gets raves on Tripadvisor and the price isn't bad, but there are less
expensive options to be had too.