We have just returned from a delightful two weeks in Cavtat.
The Villa was perfectly located - up a quiet, quaint little side street in Cavtat, but literally a minutes walk away from the great selection of restaurants and bars in the town, the best located beach club and a handy supermarket which sold fresh bread and pastries.
One of the attractions of the town is that it is almost traffic-free, and you really won't need a car whilst staying here - there are very regular boat and bus services to the other main attractions in the area, such as Dubrovnik and the local islands.
The house itself is comfortable and well equipped, with superb aircon, which was much appreciated during our stay when the weather was really hot.
Our hosts were really helpful, quickly responding to any questions we had, and were really helpful in transfers to and from the airport.
As a family of 5, we had plenty of room in the house, spread over three bedrooms (the downstairs bed was partitioned off from the rest of the living room, so that wasn't a problem at all).
One of our favourite parts of the holiday was to go to the Ankora wine bar, just a couple of minutes walk away in the town, and enjoy a very nice glass of wine while watching the superyachts come and go into the port. Think Puerto Banus atmosphere, but a quarter of the price!
Friends who stayed in Dubrovnik at the same time as us were very impressed with Cavtat, appreciating it's beauty and calm over the heat and bustle of Dubrovnik, often overcrowded with cruise ship tourists, plus eating out was generally about half the price as it's better known neighbour.
I'd unreservedly recommend staying here - don't expect late night clubbing or a Magaluf type beach scene, but do expect lots of good restaurants, beautiful scenery, a lovely property and friendly and helpful hosts.