My wife and I stayed at the Caesar Augustus (CA from here on) in May 2012 and it was a wonderful and luxurious experience.
The first thing that you notice at CA is the view. From where CA is perched, you have "Million Dollar" views of Capri, Naples, Mt. Vesuvius, Sorrento, and the bay and they are stunning. When the sun is shinning bright around lunch, when the sun is going down at dusk, and even early in the mornings when the island mist is hugging the mountain tops, the views just take your breath away.
The staff at CA is also exceptional. They have that perfect balance of efficiency, knowledge, confidence, and friendliness that you expect at top notch resort/ hotels. They anticipate every single need you might have and cater to those needs to a level I have rarely seen even at hotels like the Four Seasons and the Ritz. If you need something, just ask, even if you think it is a little out of the ordinary. Chances are that they will be able to help you out.
My wife and I stayed in a Deluxe Sea View room and the room was well appointed. It had all the basic necessities, a minibar (which was all complementary and restocked each day), a couch and coffee table, and a balcony with both a table and chairs, as well as an extra set of loungers.
The food at CA is also truly exceptional. Although a bit on the expensive side, they do not skimp on quality or portions and you really get what you pay for. For example, two drinks at the bar set us back around 32E, but came with a full compliment of appetizers (olives, chips, some potato croquettes, mini prosciutto/ mozzarella paninis, and some cracker/ cookie type things). Still expensive of course, but the drinks were good and so was the food. We also opted to eat dinner at the hotel restaurant one night and the meal was one of our favorites. Every thing was delicious and the service was excellent. With a bottle of wine, an app to share, two pastas, and a desert, the total bill came to ~130E. Finally, I can't leave out the breakfast. Every rate includes breakfast in the mornings, and I have to say this is by far the best "cold" breakfast I have ever had at any hotel. They have everything from a selection of 4-5 meats (prosciutto, salami, etc), 4-5 cheeses (including FRESH mozzarella), breakfast risotto, fruits, 4 different fresh squeezed juices, chamapagne, cereal, bacon, eggs, an entire table of fresh pastries, cakes, pies, croissants - the list goes on and on. It was A-M-A-Z-I-N-G.
The location on Anacapri is also fantastic. It is away from the crowds of Capri, but is easily accessed by either bus, taxi, or CA's own Shuttle. Anacapri itself has much more of a "local" feel and you can walk along the streets, seeing just as many locals going about their business as tourists taking in the relaxing atmosphere.
One last note - when we were booking, we were a little concerned at all the Tripadvisor reviews talked about the views and there were tons of pictures of the views and the hotel, but very little info about the actual rooms. If you are thinking the same thing, don't be alarmed. The rooms are great, but with so much other stuff to see and take in, you hardly think about (or spend much time in) your room.
One small tip to save a little money is to walk down the street in Anacapri and pick up a bottle of...
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This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC