First, if you geta chance to visit Morro de Sao Paolo by all means jump at the chance. It is amazing.
The Guaiamu is on the third beach, Second beach is where all the action is but third beach is just a 5 minute stroll. Watch out for high tide though, it gets a bit tricky unless you just say what the heck and get wet. It is about a 20 minute walk from the dock. Definitely hire someone to carry your luggage, its only R$10/Bag.
The Pousada itself is set back from the beach in the jungle amongst the protected crabs which are everywhere and very fun to watch. We also spied a couple monkeys. Because it is in the jungle definitely buy or bring some insect repellent. After the first night I ran to the store. Judging by the number of mosquito carcasses on the walls I was not the only one that had this problem. With repellent everything was fine.
The jungle is an amazing setting for this Pousada. Just beautful. There are three rooms per building and each has its own hammock. They are all spread out so you get the feeling fo total isolation. Its wonderful.
The rooms are decent size, small by US standards, large by European. There is a tv, AC, mini bar. The bathroom is large and the entire thing feels very 'Fantasy Island'. There are no windows or screens, only shutters.
There is no wifi, no phone, and I didnt bother turning on the TV, it seemed sacreligious in this setting.
The ambience of this place was just breath taking. Totally worth it.
The part I had trouble with, and the reason I cannot in good faith rate the property higher is the bed and the linens. The bed was flat, firm and dirty. The linens were maybe 100 thread count and felt like gauze. I could literally see through them. The pillows had a 'musty' smell. I would encourage the property to invest in some new mattresses, pillows and linens. Also, in this humid environment I would suggest some heavy duty mattress pads and pillow protectors to ensure longevity. I am sure it is tough on them.
Other than that, I would encourage anyone to give it a shot, its a great property in a great locale.

We arrived at the Guaiamu during Ressaca after carnaval in Salvador. It was a perfect little hotel for us at the 3rd beach. If you don't know much about Morro, the 3rd beach is a bit further down from "the action" but it's a great location to get away from the mayhem but still close enough for a short walk into it when you're ready. Perfect location to be honest. Hotel was quiet and set back in the woods from the beach. breakfast was basic. The owner (I've forgotten his name unfortunately) is Chilean and very cool to talk to as well as being helpful on tips for the rest of our trip around South America. Would definitely stay here again. It was a bit pricey for what we got but it was during Ressaca which is probably their super high season. assuming the rates were lower outside of this period, I would definitely stay here again.

Morro de sao paulo is a natural paradise!
The Vila guaiamu hotel is located in a natural park on the beach.
The rooms are old but the breakfast is very good!
The daily rate is a little expensive but the location is perfect to visit morro.

We were very disappointed with this hotel. In August, the low-season has put its stamp on this hotel, and there was only very few other guests. The tv did only had four "snowy" channels, Air-condition was noisy. The terrace was unfit to use due to the many mosquitos and we had to close alle windows and the door to the room due to the mosquitos. Still, I had 51 mosquito bites during my visit! The rooms was cold and uncharmy. The pricing was low-value for money. Breakfast was poor. However, the staff was friendly and helpful!