The Hotel Kavalari is a humble, homey place, from the pretty cobbled main path with a palm-framed doorway to the rustic rooms. Mosaic designs in the paving and fragrant plants down the stairs add a domestic type of charm, which is a contrast to some of the modern, minimalist hotels that share the same hillside. The hotel was originally the home of a local captain, and the cozy atmosphere continues in the reception area, which is like a sitting room -- with books, a TV, some sofa seating, and various pots and ornaments. Winding steps lead past the rooms down to several outdoor seating areas and the indoor breakfast room at the bottom. The owners have worked hard to create a lovely garden feel to the outdoor spaces, with hundreds of potted plants filling every corner, beautiful bougainvillea climbs the walls and window boxes line every ledge. Guests tend to be couples, or solo travelers looking for a chilled base to enjoy the caldera views.

Set in the heart of Santorini's capital, right on the pedestrian pathway that winds along the coast to Oia in the north, Hotel Kavalari is well-placed for shopping and dining. It also has superb caldera views. The central location means it will take two minutes to walk to local attractions such as the Museum of Prehistoric Thira. The cable-car down the hillside to the Old Port is a five-minute walk away, or you can take the steep steps down. It's about a 15-minute walk -- but be prepared to share the walk with the many donkeys who ferry people up and down. A bus stop that connects to the dark sandy beaches of Perissa and Kamari is in Fira as well, and trips will take 30 minutes or less. There are also bus routes to the airport and ferry, which both take about 20 minutes to reach. It's a 10-minute trip to the airport by car. 

The 18 individually decorated rooms have a simple, traditional finish and some nice touches like exposed rocks and arched doors. They aren't exactly cutting-edge when it comes to style -- expect pale hues and whitewashed furniture, some of which is a bit worn. Common amenities include minibars, air-conditioning, electric kettles, flat-screen TVs, safes, free Wi-Fi, and shared terraces with sea views. Air-conditioning is also available, though not always powerful enough. The Superior Doubles and Cave Apartments have larger living spaces and have their own balconies, with Cave Apartments also adding kitchenettes with stovetops, sinks, and dining areas. Bathrooms vary considerably. Some have a shower stall, others have jetted bathtubs with shower attachments. Many could do with a refresh, with dated tiling and shower curtains, but the newer rooms -- such as the Superior Doubles -- are well-finished. All have hairdryers and toiletries.

Features are slim here, which helps explain why this hotel maintains its budget rating despite being quite popular. There are several different terraces with both table seating and loungers available, plus an outdoor unheated whirlpool. Previous guests rave about the fresh, continental breakfast spread, which is included in the room rate and served in the cozy breakfast room or outside on the garden terrace overlooking the sea. The hotel offers a babysitting service for a fee and there's free Wi-Fi throughout.