Quinta dos Lobos is a really nice old converted estate. There are nice grounds surrounding the estate that are available to guests. The rooms are tastefully decorated but leave a bit to be desired in terms of appointments, as there are no TVs or, more importantly, clothing irons/steamers in the room. On an odd note, the staff were oddly fixated on whether my room rate included breakfast (it did), and I had to show them my Expedia reservation at both check-in and check-out to not get charged 9€ (in a country where an espresso and a pastry go for under 3€) each for a very mediocre breakfast. Aside from that, staff were friendly and accommodating.
A couple notes about the area - the hotel is near one of the key palace attractions, but is a 15-20 minute walk from the main tourist area. There is a medieval pub next door with live music that gets LOUD on the weekends.