Ao Mercado is a nice, small hotel in the middle of Punta Delgada. It's easy walking to main parts of the small town, convenient free parking nearby and plenty of coffee shops and restaurants nearby. It was raining quite a bit when I was there, and activities are limited to avoid it, but the nearby museums were excellent to pass time.
The owner, Maria, was very responsive to calls/texts. I had an issue with low flow in the shower in my room when I checked in and she quickly responded and switched my room. The rest of my stay was lovely. There is a common area/living room which was being used by a family with a small child. I didn't spend much time in the hotel to take advantage of it or the kitchen and onsite laundry, but other guests seemed to appreciate them and use it!
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