Wonderfully situated right on the waterfront, this is the beating heart of Shela. Owner Carol knows everything there is to know about Lamu (and provides her guests with handy maps); the 28 characterful, Swahili-style rooms (some with private terraces) all face the sea; the staff arrange all manner of water sports; and the restaurant is the best in Lamu. Winner.
On top of all that, the hotel is responsible for the sea turtle protection project on Manda Island; stop by and talk to Famau about it.