The Portuguese pousadas are hotels that are either in historical buildings (castles, monasteries, etc) or in a particular nature setting.
Pousada São Filipe is 17th century castle, built by King Filipe II of Spain (later King Filipe I of Portugal) on a hilltop with a great view over the city. It served mainly as a fortress.
As with all "Pousadas" it is very exclusive and there are only 15 rooms and 1 suite.
Service was outstanding, every single person we talked to were extremely friendly and knowledgable.
We even got a tour of the catacombs underneath the castle, which was a unique experience. We had the chance to see some torture instruments and old jail cells as well as military escape routes, very impressive! It is not advertised, but if you ask as we did, you might be able to experience it as well.
Rooms were nice, very faithful to the original, but with a modern, impeccable bathroom.
One word of advice: If you ask for an additional bed in the room, take in mind that it is a rool-out bed and is extremely uncomfortable. It is OK for a night or two, but not for a long stay.
Breakfast is also impressive, there is a large selection of traditional Portuguese food (if you are not familiar with it, let me just tell you that it is excellent), so you won't leave hungry.
There is also a very small, lovely chapel, with Portuguese azulejos (blue tiles) on the walls and ceiling, that is locked, but has a glass door, so you can see inside (we asked to open it and they did).
I would not go there without a car. It is not walking distance from anything.
Of course, all this comes at a price. Rooms range from 120-250 Eur, but make sure to visit the website for special offers. There are often 3 for 2 or other kind of offers.
For some more pictures, take a look at the travelogues:
Unique Quality: Beautiful view, historic building, the catacombs, the food, the service.
Directions: When in the center of Setúbal, there are traffic signs indicating "Castelo" or "Pousada".
Rua do Alto da Guerra, Setubal, Estremadura, 2914-518, Portugal
Castelo De Sao Filipe, Setubal, Estremadura, 2900-300, Portugal
Avenida Joao XXIII 193, Montijo, Estremadura, 2870, Portugal
Troia by the Marina, Setúbal