Stayed at this hotel for a couple of nights in June 2011 and had a great time. Though nothing in excess, it provides everything one needs. It has a salt water pool, the beach is just outside, good lunch restaurant, 10 minutes walk to Alvor (the village) where you can find some amazing dinner restaurants, and a 10-15 minute cab ride to the bigger city near by.
If you have children then this may not be the best hotel of choice, considering that there are no facilities or adaptions for kids.
If you can, make sure to book a room with the sea view. It is fantastic.