If your looking for a good hotel to just chill by the pool then this is for you. No frills hotel, but with everything you need. Very helpful staff, clean, tidy. Small hotel so poolside not to busy. Ideal location as its in the middle of the strip and the old town, tho the beach is a long walk away. Supermarket just 2mins away, the train around the resort stop just round the corner.
One thing to note, ask for a room not near the bar, tho not overly loud, or busy, can be annoying late at night.

Just returned today from the Varandas de Albufeira. Situated between the old and new town of Albufeira. I have stayed in a few 4**** apartments. This was definitely not that, however it was very clean and staff were very friendly. Some modernisation is desperately needed, also the drive up to the main entrance is off putting with grafiti on some of the approaching walls.
Not enough loungers around the pool. Due to work currently taking place in the old town not all beaches are easily accessible, it also cost 15 euros a day for two loungers & unbrella on the nearest beach.
However there is a wonderful snack back/coffee shop close by called the Riviera, not to be missed.
Flat shoes a must due to cobbled and slippery pavements.
Still a great week had by all .

Stayed here in August 2004. A little shabby on the outside clean but basic internally, pool area fairly quiet whilst we were there which was fine with us. In our view 2+ stars rather than 4. Arrived late after terrible flight delays simply wanted to flop, registered and went to room, no control for TV, back to reception, 15 Euros deposit required, paid with a 20 note, receptionist tried to keep change we waited him out. Back to room, go to put passports in safe, no lock, back to reception, more money required. English speaking channels minimal. Snacks available but no restaurant, bar closed early most nights we were there. Plus points internet cafe with very helpful & friendly staff nearby, very good for teenage daughter, Mummy and Daddy could sit outside on balcony and drink coffee and port. Good Chinese restaurant near internet cafe (McDonalds also) many good restaurants in old town, nicer than on the 'strip'. Hotel situated almost equidistant between old town and the strip, not a bad walk for those in reasonable health and very close to a supermarket. Local people very nice.