The Don Manuel 1 is a well-established hotel with a good reputation.
It is in easy walking distance of town and Praia Dona Ana beach. (500 metres)
I was going to post a map link for you, but google maps seems to being playing up this morning.
Lagos has a good bus service and your should have no problem getting a bus. Just outside the Hotel is a old people's home in front of which is a bus stop for Onde Line 2. This will take you in one direction to another great beach, Praia Dona Ana, and in the other to the centro of town and eventually to Meia Praia beach with its 4kms of golden sand!!!
I have not done the boat trip up ot Silves, but I do know that it leaves from the River Side quite a way from Portimão Station. This link may help.
http://bit.ly/bSFJkq
