We stay in Salvador for the last 4 days in January (including 31 Jan the first night of Carnival). It was a excelent experience: Salvador is great, people are friendly (don't trust people afraid of their own shadows) and most of all hotel Catharina is wonderfull. Staff is friendly and very eficient, rooms are clean and nice, breakfast is very good. The location is good, not far from old city (about 10 min by taxi). Near hotel there is a beach but if you need something better try beaches outside town. Try Praia do Forte (60 km out of town - there are plenty of excursions; place is good also for snorkeling and the village very cute)
Andrew& Lili