hi portsmouth mission,
the villa gale cerro alagoa is a nice 4 star hotel, and the rooms are fairly reasonable and clean.
i stayed on bed and breakfast and the hotel breakfast is a typical med type breakfast, which is not bad if you like greasy bacon, other than that there is plenty of cereals/rolls/cheese/ham etc with tea and coffee and toast/jam if you wish.
the hotel is a bit far from most things but the road train stops right outside and is 3 euros per day for as many trips as you can do from
0930am to about 2.30 am the next morning, running about every 20 minutes(sign board on the bus shelter tells you the timetable), ensure you keep your ticket and show it to the inspector every time you board.
its great for getting to the strip/old town, which are the only two other stops.
the first stop is the strip area and get off there and walk left and right for plenty of restaurants and bars, the second stop is down in the old town area and there is plenty to do in there and the square has lots of great restaurants and bars and during the day, plenty of street entertainers.
as for whether cash points or travellers cheques, thats really your choice, make sure you have sufficient euros for the first day and then do your own thing, i used the cash points and the rate on my nationwide card was good at 1.49... and its gone higher lately, i dont use travellers cheques so i dont know what rate they give on those, sorry