It is a lovely setting with pretty views and the staff are very friendly and helpful. However, for what you pay I would not stay here again as the rooms are definitely below average. Curtains falling apart, old furniture (they really seem to take advantage of the fact that this is a historic building!), old bathroom and an old tiny, telly. Nice to stay in a historic building but for what they charge you'd expect modern comforts. Not for me.

And worth every penny! We stopped over in Setubal on our way to the Algarve and this was the most beautiful place, with unbelievable vistas, wonderful staff, well appointed guest rooms and a fabulous dining room.

I stayed here with my wife for one night here in August during our honeymoon (three weeks in Spain and Portugal). The view, from the top of a fortress along the sea/ocean, is amazing. The staff is friendly. The food in the hotel restaurant is great. However, the hotel is really expensive for Portugal. My suggestion is that you visit Sao Filipe in the morning or afternoon, have lunch on their outdoor terrace (which offers a more complete view than the dining room) and then stay somewhere else. If you do elect to stay in Setubal, then you should consider taking the ferry to the small beach island (I think it's called Troica) where you can lounge by the beach and, if you are lucky, watch the dolphins swim by. Finally, train service just began from Lisbon to Setubal -- so there's no need to rent a car. Since it just started most tour books don't list it.

We really enjoyed our stay here.
The staff were friendly & the restuarant excellent.
Ask for a room with a view over the bay.
Have a light lunch on the terrace overlooking the bay and just enjoy the luxury.
Access is up a long steep ancient castle staircase (so would be a problem for anyone with walking difficulties). However the staff are very willing to help carry your luggage up & down.
Highly recommended.