Hostal Casa de Mouat - B&B Reviews
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They have probably one of the best views of the bay in town. There are some permanent residents living there so you kind of get the feeling you are staying at someone's house but weren't invited. It isn't really a hostel, More like an appartment. They have a nice Cafe below. If you're looking for a pleasant quiet place to stay this is it. Also, it is very reasonably priced.