Located in the historical centre and main commercial area of Lagos, Caravela is a 2 floor hostel that offers 16 confortable rooms. Free WiFi is available. The heated rooms are equipped with large closets, dressers, support tables and chairs. Guests have access to shared bathroom facilities and a common terrace on the top of the building where one can relax and read a book. Guests can enjoy their meals in the breakfast room covered with tiles from the 17th century. The surrounding pedestrian area is filled with shops, cafés, bars and restaurants serving fish and seafood specialties and traditional Algarve cuisine. Upon request, the staff at Caravela can arrange surfing, wind surfing and kite surfing reservations. The Lagos Marina is just a 10-minute walk and the Lagos Train Station is 1 km away. Meia Praia Beach across the river is 1.7 km away. Faro International Airport is 90 km away.

Couples particularly like the location — they rated it 9.2 for a two-person trip.