Carmelo's best downtown option, this combination hostel-posada delivers on its 'boutique' moniker, offering a comfortable seven-bed dorm with plush duvets and immaculate shared bathroom, plus nine private rooms, a well-equipped guest kitchen and a spacious central common area, all in an attractively restored colonial building seven blocks from the ferry terminal and two blocks from the main square.
Bicycle rental is available (US$10, discounted to US$5 if you book a winery visit through the hostel).