We had a wonderful holiday in Atalaia at Ana's cosy family house. Our kids loved the pool (never left it) and there was always a shaded area under the laurel tree for those of us who weren't full time sun worshippers. Lourinha is a lovely town nearby with great places to eat and three supermarkets within 100m of each other with everything you could possibly need for your stay. Obidos is a little over half an hour away, well worth a day trip. The sea is within a 5 minute walk and other amazing beaches within a 10 minute drive. Ana's house has all the feel of a holiday home where a family is regularly coming to. We settled in and felt very much at home there right from the start.
We would very much recommend it for a family holiday