April of 2010 for three.
check out rick's recommendations. we stayed in the Hotel Salema Residencial, which Rick isn't a fan of but we loved. There are also always locals waiting in the main square (which is essentially two or three benches near the beach) to rent out rooms in their home to tourists.
Take Rick's recommendation and stay at the Mare.
Nice couple run it with great Breakfasts, excellent rooms, fantastic location, & free internet. What more could you want?
We also stayed at Hotel Salema Residencial and it was really nice, have no idea, what he had against it...
I agree with Dean, the Mare in Salema is really a great place. They also have a small apartment that might work perfectly for 3:
A Mare Salema
On our Spain/Portugal RS tour last year, we stayed in Salema. The town has a flat area near the beach, and the rest is hilly. There is a largish hotel near the beach, where I stayed, with a short walk to shops and restaurants. Almost everything else is uphill. If I were to go there on my own, I would go off-season and find a B&B after arriving. There was one man near the fishing area who seemed to be looking for tourists to help find lodging. One couple in our tour group used their day-off to go golfing. Another caught a bus to a nearby town.