IMHO HB better hotel - SS better location. Your question depends on price ~ I take it HB is more expensive?

thanks for your response - yes HB more expensive - but not greatly so.

In that case I personally would go for the HB.

Thanks for your response, anyone else got any opinions please?

I would agree that HB would be my favoured choice, there is some building work going on there at present but shoud not be a problem if you are going New Year 06.

We are regular users of the Highland Beach - Silver Sands is closer to the beach but friends of ours told us (in their opinion) that SS was a bit more basic than the Highland.

I have stayed at the Highland Beach. It was very nice and certainly a better quality hotel than the Silver Sands, especially if you get yourself a room in the new block at the back overlooking the second swimming pool. Our room was massive with a separate living area etc etc. They did a room service to the rooms and the place was clean. We didn't really use the bar but it was ok and the breakfasts were good. The location is fine too, it is on the opposite side of the main road to the beach but it is a really enjoyable (and can be eventful) stroll down past the various shopkeepers and restaurants. We enjoyed stopping off on the way home at the Mango Grove bar. Now, Silver Sands is virtually on the beach; literally two minutes accross a carpark to the dunes. It has a nice bar and restaurant plus the Sheetal Restaurant right opposite. However the rooms are a lot more basic than the Highland Beach and the pool is quite small if you intend to use that (I think not). It has a different feel to the Highland Beach and I think it is considerably smaller. The staff are very friendly and we have several friends who enjoy staying there. It is right around the corner from the Candolim beach road.
I don't think you need worry about the location of either since the distances aren't great and you can easily get taxis anywhere you want.
I would say go for the Highland Beach. But then I wouldn't say no to a fortnight at the Silver Sands. Have you considered the Nizmar? It seems to have a very loyal following! (just to make it harder!).