This Pousada was lovely! We stayed 2 days with my girlfriend, and we both wanted to stay more in that place (unfortunately, the pousada was full because of the approaching New Year's Eve).
It is located a few hundreds meters away from the Historic Center, close to bus station and banks.
The owner is very friendly and speaks many languages (Portuguese, English, French, Spanish,...). The place was very clean, safe, and the breakfast is awesome!
I would really recommend this place. more