On a restaurant-heavy street one block from the beach in Pina, Recife's first boutique hotel (call it economic-boutique, anyway) offers a marriage of modern rooms with vaguely Victorian-chic design motifs. Some of the themed rooms look onto small urban gardens while others are a bit poky, so ask to look around. There's a nice relaxing deck with a pool.
Unfortunately the breakfast (tangerine Tang?) is anything but boutique.