We stayed with two small children, 2 and 4. It was a great location for getting around. We had a car since we drove up from Faro and parking wasn’t that bad. A few times we were even parked just outside the front door. There’s a museum and botanic garden at the top of the hill and mini shop at the bottom of the hill, along with some great restaurants.
The kitchen is also well equipped if you choose to do any cooking.