De Pedra e Sal Hostel & Suites

Setúbal's best hostel is flush with gorgeous hardwoods and subtle but well-thought-out design touches (Smeg refrigerators, seafaring art, fishing nets and globe-encased seashells). Dorm beds (book ahead – there are only 10) feature privacy screens, and the downstairs restaurant is very popular. Hip young owners can hook you up with wine and coasteering tours, among others.