First you definately need to choose the west of the island to get the best walking/biking areas.
We are based near Polis/Latchi which is a quieter area than Paphos but it is right in the middle of stunning outdoor countryside. The problem with Polis/Latchi is that there is only one "posh" hotel (the 5 star Anassa) offering luxury creature comforts/indoor pool etc - but it's expensive.
The other hotels in the area are 3 star or apartment hotels with outdoor pools - they offer simpler styled accommodation and good value for money but may not be up to the creature comfort level you are looking for.
Paphos itself is a busy resort spread out over a wide area due to property development "sprawl". Most of the big hotels like the one you are considering are along the sea front. Yes, Paphos has a lovely harbour area but the restaurants are a little expensive rather than good value, unlike Latchi harbour (near Polis) which is smaller/quieter but has a good atmosphere and great value fish tavernas.
The harbour area of Paphos is also adjacent to the sea front strip with lots of cafes offering cheap breakfast, Macdonalds and KFC etc...
The other problem with Paphos is that you will need a car/taxis to get you to the walking areas - the Akamas area for example is a 20 minute drive from central Paphos.
Limassol is far bigger and noisier than Paphos (though closer to the Troodos area) and Larnaca is too far from good walking areas.
You really need to decide whether you want to be in the heart of beautiful countryside in a quieter resort (Latchi or Polis) or in a smart hotel that requires a car to get to the countryside.
OR maybe consider staying in a luxury villa (an outside pool will be fine to swim in by mid May) eg. in Argaka/Latchi (see my villa page for tips/style of villa etc) - you can then have personal luxury and your own space and still be next to great walking/biking areas.
If you want good quality bike hire delivered to your door in the Polis area or need a bike tour/walking tour guide check out this great local company
Wheelie Cyprus Enjoy your holiday