Run by the same family for decades, this rustic place on lively Praça da Matriz is by far the best budget hotel deal in Paraty’s colonial center. Wood and ceramic sculptures, stone walls and floors, columns and beamed ceilings, and a courtyard full of plants, cats and dogs all add character. Several rooms have balconies overlooking the square.
In the morning, it's wonderful to sit on the open-sided flagstoned terrace and watch hummingbirds flit about the interior garden over a breakfast of fruit, cheese, cake and fresh-squeezed OJ.