Yes, the Alua Leo is a bit more city-based. It's a 2-minute walk to the Playa de Palma beach but it's essentially in an area that is populated year-round by Mallorcans and expats.

A useful trick for the other hotels is to see which ones sell an "all-inclusive package" and which ones stop at "half board" or "full board" (no alcohol included, usually). Also a Google Hotels rate calendar search to see which hotels manage to charge higher rates throughout the summer. (a partial guide to quality... budget permitting...)

From previous exploration of the island from a base at the old PH, the coves / towns on the eastern side of the island are indeed the likeliest to be nice. But we are talking about Mallorca here - any part of the island that is seasonal is going to be aimed at Brits and Germans - in general, Spanish mainlanders drive to the coast instead of flying to the Balearics.

Also consider Ibize, which has a bad reputation for partying but actually has the nicest areas once you get away from party central...