We had a one night stay here, and will definitely be back. The hotel is fantastic, and we absolutely fell in love with Faial. The hotel is very professionally and lovingly run. The location is perfect, right on the marina and super close to Peter Sport Cafe.
We booked the Blue Shark room (family of three), but due to an issue, we were given the Squid room, which was one floor above. This was an upgrade, I assume, as we were one floor higher and the view of the marina and Pico was exquisite (3rd floor using the floor counting system in USA). The room had one big bed and two twins. The bathroom was well appointed. A pleasant surprise was the use of a kitchen, which was located a few steps above our floor in the rear of the hotel. I could imagine that folks who like AirBnB might appreciate this, as it allows great flexibility. We were given a key for a locker in the kitchen, but our stay was too short to avail ourselves of these facilities. I really appreciated how well thought everything was. Also, as this is a small hotel, be aware that the office closes at 8pm. We were given excellent instructions and a key at checkin for the front door, which locks at 8pm.
I do not believe that there is an elevator, as one would expect for a small hotel in a historic building. So be aware and ask for help if you need it - the staff at the hotel could not be more friendly and accommodating. Like most of the Azores and much of Europe, the beds are firm by US standards.