All in all I have to say that I'm very much satisfied with my stay at the Aqualuz. I went down there for Christmas 2012 with my father and had requested a twin room beforehand and this was also the one we got.
The personell at the reception was cordial and very helpful at all times, all knew English very well and of of them even spoke German extraordinarily well. No matter what sort of query we had, they were always helpful and eager to answer to solve the problem/question.
The room as such was actually an entire apartment. They closed down large parts of the hotel because of the low-season, so it might be that there was a hidden upgrade for us, but there was absolutely nothing to complain about. Spotlessly clean and large with a comfortable sofa, a table, four chairs, tv, seperate sleeping room, kitchen, nice and clean bathroom, etc. The apartment also had a balcony facing the inner courtyard (as all rooms do, as far as I know), and since the hotel was quite empty, there was no noise at all.
I could imagine though that it might be a bit noisier during the high season, and if you try to circumvent mass tourism as I do, you might not feel equally "at home" as I did during my stay.
The hotel is very close to the inner city, only 15 minutes to walk to the further end of it. I recall some people complaining about the distance, but I don't see a problem in this at all. Quite contrary, its much closer to the small, beautiful beaches than most other more "city-near" hotels are.
The restaurant food was excellent as well, the menus always change per weekday, but since we only stayed for 7 days, there was no repitition to be seen (except for staters and desserts, but since they were delicious it was an okay burden).
We were also granted free access to the spa once a day and got a voucher for some port in the hotel bar, which we used on the last day.
The only minus for the hotel that keeps it from being 5-stars is the WiFi connection. The free WiFi in the lobby didn't work on certain pages (might be since I'm using a Mac and not Windows), and the internet in the room we were charged for. We paid almost 25€ to have the connection for a week, which is way too much for 2012. The receptionist said that the management most probably was about to change this soon, but until then its going to be 4-stars (unfortunately).
Everyone in the hotel just made our state abolutely splendid and I'm looking forward to returning to this beautiful place!