I stayed at Hotel Mediterraneo for three nights in mid July. It is very well located, close to the station but also in the centre of Santa Margherita and over looking Villa Ducazzo on the back side. I found the owners to be very friendly, jolly and helpful. Initially they put me in a spacious room overlooking the front but it was very noisy and a few things in the room were broken or didnt work. However, after mentioning this to the reception, they quickly agreed to move me to a new room without any hassles and I got to choose out of two. The hotel also has free bikes which is convenient and the breakfast is a large spread. Overall, I enjoyed my stay here and would probably come back. I think it was a little expensive for what I got (no aircon as well) but it is peak holiday season.