Just spent 3 weeks at Lagoa Azul (2nd visit to this hotel) It is a fantastic hotel great staff can't do enough for you.
Much smaller hotel that HB which in my opinion makes it much more friendly, within a few days you will be on speaking terms with all the guests making a great atmosphere, True it isn't as close to the the beach as the HB but taxis are cheap and also the hotel runs a free bus every hour to Baga beach.
Several restaurants within walking distance and food in the hotel is good, but again you can get a taxi to the busier parts.
So nice to wake up to just the sound of birds rather than the sound of traffic and the honking of taxis.