This is one of the oldest towns in Tanzania used by Spanish and Arabs to get slaves from eastern Africa into Zanzibar and then ship them around the world. Even thought the buildings are run down and in not very good condition, the overall feeling was fantastic. Simply dive into very narrow streets and explore it (be prepared to be lost of hours).
We stayed in hotel within a village (instead on the beach) which means that we need to walk 15 minutes to reach the beach but it wasn’t too much of an issue and price difference compensate it very well (just don’t forget to get a flash light with you as after sunset there is no light at all). Beaches are quite nice (8 out of 10) and the seafood which you can buy in restaurants is very lovely and in good prices. (lobster cost us about 15 dollars).