Area/Hotel Recommendations for First Visit

Planning a trip to Sao Miguel in July for 5 nights. Started looking at hotels and I am conflicted about where to stay so I would love any recommendations. It looks like the top 2 choices are Octant in Sao Miguel or Terra Nostra Garden Hotel. We are looking to relax and value convenience. We like areas that are walkable and are near shops/restaurants. The Octant in Sao Miguel seems to be in a great location but I hear great things about the Terra Nostra Garden Hotel. Any opinions or insight would be great.