HOTELS and RESORTS
 
PRAIA DA VITÓRIA (10 minutes driving time from airport):
 
 
ANGRA DO HEROÍSMO (20 to 30 minutes driving time from airport):
 
Pousada Forte Angra do Heroísmo **** (Historic Hotel in a rebuilt castle)
 
HOSTELS
 
D. Irene Hostel (Lajes parish 5 min from the airport),
There are plenty of other nice hostels to choose from. See here.

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