Checking In: Il Palazzotto Residence & Winery, Matera

Il Palazzotto Matera offers a refined stay inside the Sassi, blending cave history, boutique charm, and its own on-site winery.

Set in the heart of the Sasso Barisano of Matera’s old town, Il Palazzotto is a boutique residence and winery that manages that rare balance of simplicity and sophistication. Like many of Matera’s cave hotels, Il Palazzotto is carved into the rock, yes—but not in a gimmicky, “sleep-in-a-cave” kind of way. It leans into something subtler—authenticity, quiet luxury, and the kind of design that reinvents cave stays.

I checked in for a few days this summer, just as the city was beginning to heat up. What I found was less a hotel and more a hideaway—discreet, beautiful, and surprisingly soulful. Mornings were all about soft light and local pastries; afternoons, for wandering Matera’s quiet corners before returning to a chilled glass of Palazzotto’s own wine in the courtyard.

There’s an effortlessness to the way it all comes together here. The rooms are minimal but warm, modern but anchored in the past. It’s the kind of place that doesn’t need to shout—it already knows it’s exactly where you want to be.

Here’s a closer look at Il Palazzotto Residence & Winery, Matera, the ideal base for your trip to Matera.

*This Il Palazzotto Matera review may contain affiliate links, meaning I might make a small profit if you choose to book at no extra cost to you. This helps me to keep providing you with top-quality content for free. This post is sponsored by Il Palazzotto Residence & Winery. As always, all opinions are my own.

What to Know Before You Go

Location

Il Palazzotto sits in an especially convenient pocket of the Sasso Barisano, just a few steps off Via Fiorentini—the main artery that runs through the lower part of Matera’s historic district. This puts you right in the thick of the Sassi without the hassle of endless stair climbs. Unlike many hotels buried deep in the upper reaches of the old town, Il Palazzotto is refreshingly accessible—easy to reach on foot and surprisingly level by Matera standards.

A quick stroll along Via Fiorentini leads you to cafes, small shops, and some of the best viewpoints in the city, while the rest of the Sassi and the Civita are within easy walking distance. That said, a quick side note: the entire Sassi area is a ZTL (Zona di Traffico Limitato), meaning cars aren’t allowed in unless you have a special permit. You’ll need to park in the newer part of town and walk the rest of the way down to the hotel.

If you’re traveling with heavy luggage—or just don’t feel like dragging a suitcase over cobblestones—Il Palazzotto can arrange a shuttle or taxi drop-off at one of the nearby access points. Either way, it’s a short and scenic walk that sets the tone for your stay: ancient, atmospheric, and blissfully car-free.

Il Palazzotto can also arrange transfers from Bari airport if you prefer to visit Matera without renting a car.

When to Book

Il Palazzotto is open year-round, but Matera truly shines in the shoulder seasons—spring and early autumn—when the weather is warm, the light is golden, and the extreme heat hasn’t settled in yet.

The property is small and highly sought-after, with just eight elegant cave suites (ten guest rooms total), so it tends to book up quickly—especially on weekends and during the summer months. If you’re planning a visit between April and October, it’s worth locking in your dates early to avoid disappointment. [Find the best rates here].

At the Hotel

Il Palazzotto is all about quiet luxury and a sense of place, and while it doesn’t have a restaurant directly on-site, you have exclusive access to Radino Wine Bistrot—the hotel’s own restaurant and wine bar, located just a short walk away within the Sassi.

It’s a cozy, design-forward space that pairs regional Lucanian dishes with wines from the property’s own cellar, and it’s well worth reserving an evening to dine there.

Back at the hotel, breakfast is served daily in the light-filled courtyard or vaulted interior lounge—expect a generous spread of local specialties, pastries, and rich Italian coffee. There’s also a small wine tasting area where you can sample bottles from the Palazzotto label, Radino, adding another layer to the experience.

While the property doesn’t have a spa or pool, the vibe here is more romantic bolthole than full-service resort. It’s not adults-only, and they do cater to families, but it leans toward a peaceful, grown-up atmosphere that’s ideal for couples or solo travelers looking to unwind in style.

Il Palazzotto Residence & Winery Review

The History

To understand Il Palazzotto, you have to understand the Sassi—Matera’s ancient cave districts and one of the most extraordinary urban landscapes in Europe. These honeycombed dwellings, carved directly into limestone cliffs, have been inhabited for thousands of years, making Matera one of the oldest continuously lived-in cities on earth.

For much of the 20th century, though, the Sassi were synonymous with poverty. Families lived without running water or electricity, often sharing their cave homes with livestock. By the 1950s, conditions were so dire that the Italian government forcibly relocated thousands of residents to modern housing on the outskirts of town. The Sassi were abandoned, left to crumble and fade into near-myth.

It wasn’t until the late 20th and early 21st centuries that a quiet revival began. Artists, architects, and bold hoteliers saw potential in the raw, sculptural beauty of the caves. With careful restoration and a deep respect for the area’s cultural heritage, the Sassi were reborn—this time as UNESCO-protected treasures and some of Italy’s most unique boutique accommodations.

Il Palazzotto is a prime example of that rebirth. What was once a series of interconnected cave dwellings has been transformed into a refined, elegant retreat that celebrates Matera’s layered past without losing its sense of authenticity. It’s history you can sleep in—literally.

The Rooms

Il Palazzotto offers just ten rooms, each one uniquely shaped by the natural contours of the cave architecture. If you’ve ever wondered what it’s like to sleep inside a piece of living history—without sacrificing comfort—this is the place to find out.

Eight of the rooms are true cave suites, carved directly into the stone, with vaulted ceilings, natural textures, and an ambient hush that makes sleeping here feel a bit like entering another realm. Each has an adjoining modern bathroom, though it’s worth noting that a few of them have more open-plan layouts—great for couples, but maybe not ideal if you’re looking for full bathroom privacy.

For those who’d rather not stay in a cave, two rooms are located on a higher level with balconies and natural light—ideal if you want the Matera atmosphere without the subterranean feel. One of these is set up as a full apartment, making it perfect for longer stays or if you need more space.

The hotel also offers one pet-friendly room, so you don’t have to leave your four-legged travel companion behind. All rooms blend rustic authenticity with minimal, modern touches: smooth stone, soft linens, and just enough design detail to remind you you’re staying somewhere special.

The Winery

At the heart of Il Palazzotto’s offering is Radino, the estate’s very own boutique winery. Its roots trace back to the 1950s, when the original vineyards were planted, and today it’s in the hands of the D’Angelo family, who brought the brand forward with new energy after taking over in 2015.

While based in Matera, Radino focuses on Lucanian—and particularly Apulian—varietals, with a strong emphasis on Aglianico del Vulture and other regional selections, all crafted organically.

Guests at Il Palazzotto can dive into wine culture with private tastings right on-site, sampling estate labels while learning about the vineyard’s organic approach. When you’re ready for a meal, Radino Wine Bistrot—housed a few minutes away in a historic church and monks’ quarters—serves as the culinary anchor.

In short, Radino offers more than just a place to sleep—it enhances the Matera experience with a genuine farm-to-table wine journey rooted in local terroir and tradition.

Radino Wine Bistrot & Cigar Room

Housed in a beautifully converted church and former monks’ quarters, the restaurant blends reverence and rusticity in just the right measure. Downstairs, the original stone storage rooms have been transformed into an atmospheric wine cellar and cigar lounge—a moody, barrel-vaulted hideaway perfect for a nightcap or post-dinner linger.

The menu leans contemporary but stays rooted in tradition, spotlighting hyper-local ingredients with a creative, thoughtful twist. During my visit, the veal cheek was a standout—slow-cooked until fork-tender and full of deep, meaty flavor.

Traditional bombette (Puglian pork rolls) were served with an unexpectedly delicious cime di rapa cream, adding a touch of bitterness that balanced the dish beautifully. Pasta is also a strong suit here: from handmade cavatelli with local sausage ragù and earthy mushrooms to silky tagliatelle dressed in a subtle chickpea cream, each plate was elegant without being fussy.

Naturally, the wine list features the full range of Radino labels, which pair seamlessly with the menu—whether you’re partial to a structured Aglianico or something fresher and more mineral-driven.

If you’re staying at Il Palazzotto, dinner here is a must. Even if you’re not, it’s one of the more memorable dining experiences in the Sassi: refined, intimate, and deeply connected to place.

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