I would first like to say that the Cavtat area is really nice. It is a great spot for a vacation. The hotel, however, is a different story. It is generally outdated, with extremely hard and uncomfortable beds. The air-condition was very ineffective and all the rooms had carpets from another millennium.
Furthermore, the breakfast was probably decent for those wanting fries, bacon and sausages, but really bad if you care for bread and a variety of fresh toppings. Also, the "juice" was more like syrup, and please do not get me started on the coffee.
Finally, the hotel advertised with having tennis facilities and a gym. Well, there is a gym, but this was just a total mess and the tennis facilities are not associated with the hotel, but are run by a private corporation. The courts were very nice though.
In conclusion: Go to Cavtat, but stay at another hotel - unless Hotel Albatros decides to renovate and upgrade their standards (or cut the prices to 1/3 to reflect the actual standard)