Caravela Hostel Lagos is situated in a pedestrian area of Lagos, 5 km from Portimao airport. Featuring Wi-Fi, the Lagos hostel is also just 250 metres from Antigo Mercado de Escravos Museum.

Museu Municipal Dr Jose Formosinho Church Museum is within a few blocks of the hostel, and natural sites like Praia da Batata Beach are only 0.7 km away. In addition, Marina de Lagos can be found 17 minutes on foot from the accommodation. Caravela hostel boasts location a short way from the restored 17th-century maritime fortress "Forte da Ponta da Bandeira".

Guests can enjoy dinner at Don Sebastiao Restaurante, which is just near the Lagos accommodation, or at Don Sebastiao, nearly a 5-minute walk away. Portas de Portugal - Mercado bus station is merely 0.7 km from this Lagos hostel. The 2-room Caravela hostel provides various activities, including kite surfing, windsurfing, and snorkelling.