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Alicante or Denia? Can't make up my mind!!

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I’m really trying to decide between Hotel Montiboli in Alicante or La Posada del Mar Hotel in Denia. We will spend 3 nights in this area in May. Not sure which “area” we might enjoy more. We will likely have a car for at least one day, maybe the whole time. We kinda want to be in an area where we can walk around town, with lots of restaurants and bars nearby, but would also love to be in beautiful area overlooking the ocean as well. We’d even opt to save some money and spend a little less on a hotel if there are any other suggestions? We don’t need fancy, but location and surroundings are very important. Any advice to help sway my decision?

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