Two parts to this review: the hotel itself, and the hotel and Olhao as a short break.
We stayed here for well over a week at the beginning of February. One of the nicest located hotels I have been in, and would rate in my top twenty hotels ever in terms of value for money during the low season.
We found all the staff friendly and helpful, and the service was excellent. Suite was immaculate; breakfast was excellent, with a very large choice. If you didn't want what was on the buffet you can order what you want from the kitchen.
Restaurant and bar prices are in line with 5 star hotels anywhere, and a lot cheaper than most. However there are twenty + restaurants within 10 minutes walk of the hotel, so there are many alternatives.
If you want a sea view then make sure you book a sea view room: some of the rooms at the side look towards the town or the apartments. If you are here overnight or on business you may not worry about this.
A general note about hotels in Portugal if you are visiting from US or UK. They do not generally have much of what you might expect in a similar hotel in London. e.g. Tea or coffee making equipment, tissues, trouser press, ironing board or iron. These are normally available for asking, but you may wish to order things (such as a kettle) when you book your room if you are here on business, or, like me, drink tea all day long. However there is a fridge, and free wi-fi.
I did find the air conditioning a bit loud (for such a new hotel), but I generally do. You can switch it off.....
Overall a lovely hotel, I will certainly try to get back here again!
For a short break Olhao is wonderful if you just want a reasonably quiet time. There are dozens of fish, and some other, restaurants. You do not need a car if you are only here for a few days, and don't want the hassle of driving. Without a car you can spend about four days here and still have an enjoyable time (Day 1 explore the town; Day 2 Ferry to the Islands; from the hotel it is a ten minute walk to the ferries to take you to the islands, where there are magnificent beaches which you will have virtually to yourself. (in February anyway!) Day 3 Train to Faro and explore (2.3E return); Day Four train to Tavira and explore). The station is about 10 minutes walk from the hotel, and I used it a lot. Trains are clean and seem to run to timetable; staff at the station are very helpful. NB if you have mobility problems the train is out, as there are no disabled facilities) . There is also a town hopper bus and buses to other beaches. Bikes are a good way to get about as everything is pretty flat. (Hire from the hotel). If you are a birdwatcher then there are wonderful birds on your doorstep around the old salt pans, and in the National Park.
If you have younger children, then you might want to be aware that the town closes down a bit between 5 and 7 in the evening, so if the children are used to eating at that time you will need to plan for the fact that the restaurants will not be open (although the hotel snack bar is open till seven). I guess that teenagers would find the place dull, but I maybe that depends on their interests.
So overall an excellent hotel and a lovely small town ideal for a few days away.
