This small and friendly Pousada Quatro Cantos hotel captures Olinda's distinctive cultural blend, from the colonial architecture and antique furniture to the tropical breakfast buffet and abundance of colourful Pernambucano art on the walls. Located in the heart of the historical town, it is an ideal starting point for wandering around the pretty pastel-painted streets.

Occupying a restored 19th century townhouse, the hotel exudes character and is crammed with local art and ornaments – it even has its own handicrafts shop. Reception and relaxation areas are beautifully decorated, with the simple white walls showing off their adornments to optimum effect. There is a garden with a small pool overlooked by lovely flowers and wild grasses, and a restaurant and bar (you can also choose to take meals outside on the sunny terrace). Some of the rooms have a balcony looking out over Olinda's rooftops and beyond, or a veranda with a hammock.