I can 2nd Happy Girls recommendation for the Vila Petra Hotel. Its an Aparthotel so all the facilities of a hotel with the convenience of an apartment. I stayed here 2 years ago and am heading back in August. Its immaculate, lovely rooms and pool area. Really central but honestly when your in the hotel could be in the middle of no-where. Check out the trip advisor reviews, one of the highest rated hotels in the area. Is a bit more expensive than other hotels in the vicinity but you get what you pay for!! Just be careful with Portugal because a lot of Hotels can be in the Albufeira "area" but may be 2-3K away with not a lot in the local area so make sure where ever you book is central