the strip otherwise known as Alberfura strip has hotels,eats & entertainment

wiz

Albufeira would be ideal for you all, either Albufeira (New Town) or the Old Town.

The newer part has the small resorts of Montechoro (top End of the Strip) Praia Da Oura (bottom end of the Strip) and Santa Eulalia
(Bottom of the Strip and turn left)

From Montechoro to Santa Eulalia/Praia da Oura is only about half an hours walk (I am lousy with actual distances haha!)
so don't think that by booking one area you will be miles away from the others, because you won't.

From any of the above areas you can take a 5-10 min cab ride into the Old Town for between €4-€5.

The Old Town, I thought, was always more family orientated, until we were there for a few evenings this September just gone.
It was rocking!
So it's worth considering staying there too.

Hope this has been of some help to you.