The history of Hotel San Felice can be traced back to 1645, the year in which Cavalier Carlo Sanfelice, (hence the name) Governor of Capri, became owner of the vast area of area of land surrounding the villa, at that time planted with fruit and citrus trees. At that time the building was home to the first lay sisters of the order of Maria Theresa, founded by the Venerable Mother Serafina, before the area today known as "Santa Teresa" was even built. Subsequently the villa was purchased by the Parish priest, father Costanzo Cerrotta, Chaplain officer of the Italian Navy, who authorized his brother Pietro, current owner, to convert it into a hotel.

Today Pietro Cerrotta is one of the oldest hoteliers in Capri with a wealth of experience amassed over the years; his career has been characterised by meetings and acquaintances with writers, artists and actors of the day to whom, thanks to his knowledge of English, he dedicated his exuberance and cordiality. In the Fifties his restaurant in the bay of Marina Piccola was a favourite haunt of celebrities of the calibre of Clark Gable, Mario Lanza, King Faruk of Egypt, Tza Tza Gabor, Aristotele Onassis, Maria Callas and many others. The simple and refined setting was also a result of the influence of Gloria Magnus, an English former dancer who fell in love with the azure island and with Pietro, known as "Uocchie Argiento" (Silver Eyes) on account of the silvery-blue colour of his eyes, and who was forever at his side during that golden era.

It was only in 1976 that Pietro was able to dedicate himself fully to managing the hotel; from that moment on he began an endless stream of improvements which in their stylishness and simplicity have turned the Hotel San Felice into a small jewel in an unforgettable island..