The budget traveller's salvation, this hotel performs its role perfectly. It feels like a cabin, with a large wooden balcony on the 2nd floor, and panelled rooms. While not in the cheeriest neighborhood, its walled compound has 24-hour security (with parking). One of the few backpacker havens in STP, with an interesting array of global travellers to match.
It's a short walk to downtown, laundry is a block away and breakfast is available (€8). As you pass Pensão Atlantico heading out of town, look for the unmistakable wooden balcony set well back across the street.