Just returned from a one week stay at Hotel Barracuda. It is actually in Sao Roque which is about 4.5kms from Ponta Delgada (It is a 40min walk, or there are good bus connections into the city and lots of parking outside the hotel).On approaching, we did not expect too much; it was just a plain white building on the outside with dark and dingy corridoors inside.

We had a twin bed apartment on the first floor which was surprisingly spacious. The bright blue floral bathroom had older style fittings with bad water pressure and no ventilation to speak of. There is also a lot of storage space by the front door so you can shove all your things out of the way.
The bedroom was separated from the living area by a set of curtains. One bed was quite comfortable, while the other was all springs. In the living area there was a worn out old orange sofa and arm chair with a small dining table set.

The kitchen had a small two plate stove top, with cutlery and kitchen equipment in the cupboards. We did not use these (besides to cut up our Sao Miguel pineapples which you really have to try), because there were far too many good restaurants on the island to try out. The pizza at Oceanside Pizzeria across the road is a safe bet if you can't be bothered travelling into Ponta Delgada, but apart from that I would reccomend that you look outside Sao Roque for a good meal.
The best part about the apartment was the large balcony that overlooked the beach. The crashing waves might take a couple of nights to get used to, but it is a beautiful sight to wake up to every morning.

On the warmer days, the apartment tended to get rather hot and sticky (no fans or air con), and on weekends the noise from the beach might irritate some. On our second last night we sighted a big cockroach making its way across the floor. Needless to say the next couple of nights were spent in a slight state of paranoia.

The apartment was cleaned and towels changed every day, but the tiles on the floor always felt a little sticky and dirty underfoot. Watch out for hairs of mulitple origin on the bathroom floor.

The staff, especially at reception were very friendly and helpful. There is also a good collection of brochures and info in the lobby area on activites and rental cars etc.

A buffet breakfast is included (from 0730-1000); you get juices, cornflakes, various breads, luncheon meats, yoghurt and fruit salad which is replenished regularly. It is quite a good selection, and the dining area overlooks the beach, so it is a really nice setting to start the day.

Overall, it is an okay place. It is good for those who want a holiday by the beach (there is no actual beach in Ponta Delgada itself), but for those who want to be close to restaurants and nightlife, you should opt for a hotel in the city as it is much more convenient.