The Pousada facilities and staff were wonderful. The historic part of the Pousada was a former palace with restored rooms and period furniture. The rooms and facilities were modern and well kept - sizable rooms, wonderful views of the countryside, a great pool, and balconies/patios with scenic views of the orchard and town. The restaurant was very good but small - reservations are a must. The bar was also small, but nice. All the staff was warm and friendly. Parking on the facility was particularly convenient and safe.
The town of Estoi is cute and safe to walk around. The gardens and orchard of the palace were wonderful to explore. The town is small, however. Estoi has some nice little shops and some ancient ruins within walking distance. For hikers or trail runners, there are some trails that go up into the hills and back around (about 5 miles - I used Strava to find possible running trails.) Estói was a great jumping-off point for those who rent a car - close to Loulé, Faro, Olhão, Portimão, and the rest of the Algarve. I would not recommend it for travelers without transportation unless it was just for a weekend getaway.
Overall, the Pousada Palácio Estói was a wonderful find - we would definitely return and recommend.