This is a great hotel, right in front of the beach. The hotel is, as all the others in the Azores, very clean, safe, and the room has a good size for an european hotel. Everything is quite new and crispy, and the internet is free.
If you are fussy about noisy (which I am not), you might think twice about paying the extra for an ocean-view room. There is a bar nearby where people get too happy at night, with the normal and loud sing-along. But I think the view during the day makes up for the noise, and the double-glazing on the window should suffice.
The only thing I think they could improve is the breakfast. I like fresh fruits, and the selection is poor. Which is a shame, because the hotel is a short walk from the Municipal Market, where you can spend 1 euro and buy about 5 of the best peaches and nectarines you have ever tasted.
Overall, Terceira is a fantastic place for a relaxed week off, and the "Varandas" hotel is a great choice. You might do what I did and spend half of your stay in Angra (Hotel Beira Mar), and the other half in Praia da Vitoria. Either way, the island is great.
Although I dont have kids, I think Terceira is a great place for a family vacation. The sea is quiet, and the kids seem to love it. Also for those who do not speak Portuguese, the standard of English is quite good. The islands have strong ties to the US (there is a base there) and to Canada (where a lot of locals emigrated to).
