The hotel you talk about is also known as the corinthian and is a beautiful hotel with stunning views over Gulluk and the bay. I would recommend you stay there as it is easily a four star. It does all inclusive, HB and BB, and if you want to take advantage of the fantastic restaurants in and around the harbour, then go for BB. There is a walk down some steep steps to the hotel owned beach and seafront bar restaurant, fuegos which is very nice.
Although close to the airport you will not hear any air traffic due to the direction that the planes come in and out of the airport.
I reckon you'll love the place.
Nigel