It was great 1982. Got back yesterday, it's my third trip there as my sister-in-laws husband is from there and they have a holiday home in the centre of town. Plenty of really good restaurants for night time, with street entertainers out in the main squares til midnight. There are an abundance of bars scattered around the small streets for beer and sangria. If you have a pool, try to get to some of the beaches on a couple of days - Meia Praia is the main on, easily accessible from the main town dependant upon where you are staying, although the beach at Porto de Mos is better on windier days (you may need a car to get here).
We went to a locals restaurant, Restaurante Bom Apetite, for Sunday dinner, and it was the best octopus I've ever tatsed. Bit off the beaten track, but superb.
Lagos has plenty of history, it was home to the largest slave market in Europe,and the building is now a museum, in the main square opposite the Santa Maria church (where my sister-in-law got married, and one of my nieces was christened). There is a big dancing party here in the square every Friday night - has to be seen to be believed, but this would never happen back home.
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One of the great things about Lagos is it's lack of overseas tourists - the majority of people around are Portuguese, although most speak good English (although my bro-in-law was there most of the time to order stuff for us). Prices are generally quite cheap, with a good daily market on the prom overlooking the marina. There don't appear to be big groups of boys or girls getting trashed, and you wouldn't mess with the local police.
Have a great honeymoon - if you want some more recommendations, send me a PM