Went to this hotel due to the suberb ratings. The view towards the old cathedral is indeed very nice, less nice is that behind that lovely scene you see ugly harbour buildings all around.
The hotel is a pousada, but they have done their utmost best to cover any old charm: cheap 70's brown wood, plastic window frames, tasteless flowers on the wall.
Nice marble bathroom - but bath with a sticky shower curtain.
Nice balcony - but everyone visiting the cathedral sees you, and at night huge 'construction lights' do not only light the building but you as well.
Restaurant listed on the michelin (no star) but there as well cheapish food in large tasteless portions.
You are nicely in nature, but still hear all rumour of the city traffic coming up.

Pro's: good bed. Nice hiking route down to the village.

The hotel is in a fantastic location. Views are amazing and rooms are great. Service is a bit aloof and the restaurant is not very welcoming. However, the room and location make up for this and you can always go into town for a meal.

Yes the view is spectacular and the warmth of the staff amazing especially in the restaurant.

Food of good quality, wine list list perfectly adequate.

Decor is a bit faded otherwise you'd be hard pressed to find fault.

We arrived here having spent two nights at the Pousada de Oporto and, I'm sorry to say, this hotel can't begin to measure up to its cousin to the south, even though the prices are virtually identical. The room we stayed in was dated, the double bed was small (I don't even think it was a full-size queen), the public rooms are a bit threadbare but still elegant, you have to pay for wifi and the signal isn't particularly reliable. The staff, however, is excellent and accommodating, the bar is cozy (and the bartender is world-class; ask for a caipiranha and you'll get the best one you've ever had), the breakfast buffet is lavish and the views out over the city and Atlantic are breathtaking. This pousada is heavily used by locals for public events -- a wedding was taking place the weekend we were there -- so meals had to be taken in a large room off the lobby but that was OK; it was interesting to see a Portuguese wedding reception which began mid-day and continued until the wee hours of the night. (People behave with much more decorum than they do at American wedding receptions.) One last note: Viana do Castelo is very difficult to get around in and nothing special compared to nearby cities like Oporto, Braga and Guimares. There are lots of one-way streets, no parking whatsoever and traffic is dreadful, particularly at rush hour. We had difficultly finding the hotel and my wife finally insisted that I ask directions (a fate worse than death). Simply look up on the mountain that presides over the town and remember that the pousada is the building behind (and higher than) the cathedral --the highest point in town. Because of the traffic/parking, you will do well to take your meals at the hotel rather than go into the city. (It's too far to walk and there are no taxis, but I'm sure the front desk would call one for you if you asked.)