For the area, this hotel is very very cheap to stay at. However, don't be surprised if you find that this is reflected in the quality of the room and the level of service.
Before our stay, we had read several reviews that cited poor service at this hotel and weren't really surprised to see that this was true. To the manager and staff's credit, however, as soon as we complained about anything, they were quick to fix the problem.
On the upside, the food served in the hotel restaurant was quite good for both breakfast and dinner. Dinner at the hotel is also among the best and cheapest in the area at 20 reais per person. We found most of the restaurants in the surrounding area to be, for the most part, very overpriced and not that good. The exception to this (for us) was the Ecco Trattoria a few blocks down the street from the hotel. The food at Ecco was pricey but very very good. Avoid at all costs Tereza's pizzaria - they were the most expensive restaurant in the area, the pizza is far worse than what you can get from a supermarket, and the pasta was about the worst we'd ever tasted.
The other upside of the hotel is that it is about a block away from a bus stop and the city busses are a very convenient way to get to pretty much all of the beaches in the area.
Overall, the location is good and the hotel is very affordable. As long you're not looking for four-star service, this hotel is a good choice for the Canasvieras area.