Plenty! Turn left out of the hotel, then left at the first turn you come to, keep walking and you will see Casa Do Chef on the LHS, a bit further is Dom Capito, both nice but a bit expensive (by Portugal standards) then in front of you you will see Sito do Mario, not tried it, but looks okay. Left again and then right, up a small hill you have Adega do David, which opens tonight, so I have no idea what it will be like, but the new propriotor seems to have her head screwed on. To the left of Adega are Doce Diner ad Fabios, both very good too. If you dont take the turn up the hill, and keep walking, Alfredos is on the right, good value and good grub.
Thats a restaurant for every night of the week, and you dont have to go more than 5 minutes from the hotel!