I recommend Casa Faminani -Letojanni.Very good location, 50 m to the beach.
Very friendly and helpful the owner of the hotel-Ignazio

Casa Famiani and the beach town of Letojanni provided us exactly what we were looking for....a low-key, fun and relaxing beach vacation and enjoying the local cuisine. We stayed in one of the apartments at Casa Famiani and not in the Bed&Breakfast because we are a family of 5 (3 kids...ages 5 yrs, 3 yrs, and 8 months). We wanted a kitchen (which we ended up not using because dining is inexpensive in Letojanni) and space to spread out our things. The apartment had a small terrace with a clothes line to hang up wet bathing suits and beach towels. The apartment was a two minute walk to the beach, a three minute walk to a fanastic bakery, and a four minute walk to a gelateria and pizza restaurant. Igaznio, the owner, is very friendly and helpful. He once searched us out at the local beach to inform us that the town counsel had decided to enforce the summer parking rules one week earlier than normal and showed us where we could legal park our car for free. Towels are changed every other day at the apartment. And there is a washing machine in the apartment. Never heard any noise from the motorway. Would hear an occasional Vespa. Letojanni is a small beach town that has a train station and two buses that runs to Taormina (twice an hour). The restaurants are good and inexpensive. The locals LOVE children. There is a small playground (slide and climbing structure) next to the beach. And there is a trampoline park (for a small fee). The only negative things I would say are: 1.) The sand is pebbley and not fine soft sand. The kids made rock towers instead of sand towers. 2.) Lots of street vendors roaming the beach selling hats, towels, jewerly, CD's, and handbags. We will definitely return back to Casa Famiani and Letojanni. We never felt "cramped" in the apartment, and the town of Letojanni is a great value (compared to Taormina - which is nice place to sightsee, and full of souvenir shops).

We (2 Adults + 2 Children aged 12+14) stayed for 4 nights; The rooms - while being compact - have all been recently renovated. There was a small balcony from which we could enjoy a sea-view. On the other side we could see and hear the Catania-Messina Autostrada. However if you closed the balcony door it was all fairly quiet.
Ignazio was a very helpful host: he not only made the breakfast (with bread and fresh fruit salat) but also gave us helpful tips on what to see and the location of sandy beaches (in Naxos).
The room was cleaned and fresh towels were provided daily.
We had a nice stay at Ignazios place and it was a good base to discover Taormina and surroundings and Mt. Etna (a 1 hour drive).

Ignazio and his family were very good hosts who were available, yet stayed out of your way. The hotel is clean and well maintained and had a very nice homey feel. Our room had a great balcony with a couple of chairs and a table that overlooked the beach.

The location is excellent, just a few steps from the beach, a nice little market, restaurants, and other shops. The hotel is not right downtown and the area is very quiet, but its only a short walk to the main downtown piazza. There is an excellent little pannini/pizza/coffee/beer stand on the beach just across from the hotel.

We stayed for 3 nights in October which was out of season so parking was readily available which was nice. I imagine that in season parking a car may be somewhat difficult. There is a bus stop not far from the hotel that goes to Taormina.

Overall, I would rate Casa Famiani an excellent hotel and an outstanding value.