With only 20 rooms, this could almost be considered a boutique hotel—except that it's managed by students and is located on the grounds of the Institute for Tourism Studies. Indeed, this is one of the best budget accommodations in town, with pleasant if simple rooms that impart a bit of local Portuguese flair with their carved wooden headboards. Deluxe rooms even have balconies. There are free drinks and snacks in the fridge, and it's the only place I've seen in Macau with in-room computers, free of charge. Rates include breakfast, served in a pleasant dining hall decorated with traditional blue and white Portuguese wall tiles and overlooking the Institute's garden, where herbs and vegetables are grown for the next-door IFT Educational Restaurant, also run by students. The main drawback is that its location, on a hill that was once home to a fortress, is a bit far from attractions. Luckily, the Pousada offers a one-way free shuttle three times a day to the Macau Ferry Terminal, Amaral Square (near Lisboa Hotel), and A-Ma Temple, but you'll probably want to spring for a taxi upon arrival in Macau, since the bus deposits you at the bottom of the fortress hill. Pousada, by the way, is a Portuguese word meaning "a place of blessed repose," which pretty much sums up this hidden gem.