More than 150 years have gone by since Giuseppe Pagano decided to open his home as a lodging-house, and since he started-up his illustrious guest book. In August 1826, August Kopisch, the German painter and poet, was one of the guests, and being so fascinated by Pagano's account of a sea cave, filled with deep greeny-blue water so beautiful that it was beyond words, he decided to explore the cave. His painter friend, Ernst Fries along with Giuseppe Pagano and his son Michele, all went with him. Upon returning to the Inn, Kopisch used the guest book to expound his enthusiastic account of what had been discovered. Or rather, rediscovered. The island's fame gradually grew, the number of visitors constantly increased, and as a result, in 1845, "Casa Pagano" was extended and adapted to be better able to welcome the many foreign visitors coming to Capri. As such, the original building became Hotel Pagano, described by Ferdinando Gregorovius after his visit to Capri in 1853.

Hotel Pagano was the artists' favourite haunt. And especially for the scores of writers and poets who faithfully dedicated parts of their works to Don Pagano. One of Pagano's most regular visitors was the Alsatian artist Benner, who painted many of the murals that adorned the hotel for many years. Oil country princes and sheikhs, actors and writers have all paid a visit. Each receiving a polite and discreet welcome. The lodging accommodation is tastefully furnished with flowered wall coverings and curtains, white couches and terra cotta floors. The rooms are spacious, bright and a pleasure to be in. The private apartments are period decorated, with majolica floors encapsulating the colours of the island, luxuriously furnished and almost all have a private terrace. The luscious roof garden is the ideal location for an elegant aperitif before moving on, perhaps, to an exclusive dinner in the "Le Relais" restaurant. The unassuming and on no occasion ostentatious hospitality is the secret of its quietly eminent style.