Hotel Il Belvedere

This cave boutique looks unremarkable from its street-side perch on the edge of the Sasso Caveoso, but you'll feel your jaw start to drop as you enter its luxurious entrails and spy the spectacle of Old Matera sprawling below a jutting terrace. Cavernous rooms sport mosaics, mood lighting and curtained four-poster beds. Two-night minimums apply in August.