Hostel Graça 28 has the famous 28 tram stopping right across from it and the nearest bus station is a 2-minute walk. It is a restored 19th century home and offers breakfast and free WiFi access.
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Nice, large and clean rooms, the Hostel was very nice furnished, and the staff where helpful and accommodating, good advice where to get a good inspiring local meal. -
The location was very close to the center of the city and public transportation was close by. It was quiet. The staff was very friendly.