If you want to stay at the Ritz, pay to stay at the Ritz. This place is the sort of place I love: simple, affordable, and located in an ideal place from which to tour the city on foot. This hotel hits the target on all points. While I was disappointed to find that the promised free parking was a mistake (now fixed) that's ok; there was an underground garage nearby and even with that cost included, we still paid less than most other hotels with free parking.
Really, though, with a location just steps from the Torre dos Clerigos, it was incredibly convenient as a home base. So many of the best sights are an easy walking distance.
I would absolutely stay here again.