This is a fairly large hotel situated on the waterfront. The advantages of this hotel are its proximity to downtown Lamu and the fact that most of the rooms have air conditioning throughout.It has a Lamu style décor.There is a restaurant with an extentsive menu.You get free transfers to Manda Beach Club for leisure and sunbathing and has wonderful views of the dunes of Shela.

 The Lamu Palace Hotel has 20 double rooms and 3 suites with hand-finished Lamu furniture. All rooms are self-contained and air-conditioned. The superb cuisine is dominated by freshly caught fish and sea food dishes. The boat also takes the guests to the hotel's private Manda Island beach for snorkelling, swimming, and sunbathing. Excursions to the surrounding areas including Pate Island can be arranged at the reception.