Reid's Palace, A Belmond Hotel, Madeira

A Scotsman's Clifftop Palace, Built in 1891

William Reid, a Scotsman who arrived in Madeira with little, bought a stretch of clifftop above Funchal and built the hotel that still carries his name, opening its doors in 1891. The Belle Époque building he raised, pink-walled, mahogany-panelled in its hallways, with a reception hall preserved much as it was, has stayed one of the Atlantic's grand hotel landmarks ever since, now run by Belmond. It is the kind of pedigree that is easy to claim and hard to earn: Reid's Palace earns it by still functioning as a working luxury hotel rather than a museum piece, with the founder's own name now attached to its Michelin-starred restaurant.

Why It Works

History alone would not carry a hotel this size; Reid's Palace backs it with four restaurants, headlined by the Michelin-starred William, a spread of pools including a tidal pool cut into the clifftop rock, a private bathing deck, a spa, a sauna and tennis courts. A 9.40 out of 10 score across 369 reviews holds up at scale, a meaningful detail for a property with 158 rooms rather than a dozen. Pets are welcome here, unusual for a hotel of this stature, and the accessibility themes on the property signal a level of service infrastructure that smaller boutique quintas simply cannot match.

Why This Location

Reid's Palace sits directly on the clifftop along the Estrada Monumental, Funchal's established hotel corridor, with its own private bathing area built into the rock rather than a walk to a public beach. It is close enough to central Funchal, the old town, the cathedral and the market, for an easy taxi ride in either direction, while the clifftop setting keeps the hotel itself quiet, insulated from the road by its own gardens. Travellers who want to combine a storied address with genuine ocean access, not just a sea view, will find few locations on the island that match it.

Fast Facts

• Price: Luxe

• Vibe: grand, historic, Belle Époque

• Rooms: 158, including the Churchill Suite

• Best For: travellers who want Madeira's most storied address and direct ocean access

• Our Favorite Thing About the Hotel: the Churchill Suite, where Winston Churchill once stayed to paint and write his memoirs

• Dining: four restaurants, including Michelin-starred William and Ristorante Villa Cipriani

• Amenities: heated pools, a tidal pool, private bathing deck, spa, sauna, tennis courts, pet-friendly rooms

• Attractions: Estrada Monumental, Funchal historic centre, the cathedral, the market

Four Restaurants, Headlined by a Michelin Star

Dining at Reid's Palace runs on its own internal logic rather than a single hotel restaurant stretched thin: William, named for the founder, holds a Michelin star and sets the formal register; Ristorante Villa Cipriani offers an easier terrace dinner; a poolside restaurant covers breakfast and casual meals through the day; and the terrace itself is given over to a traditional Afternoon Tea looking out over the Atlantic, a ritual the hotel has kept since its earliest years. It is a rare case of a historic hotel restaurant programme that has grown rather than calcified, adding a Michelin table without losing the tea-on-the-terrace tradition that first built the hotel's reputation.

A Tidal Pool, Palm-Shaded Gardens and the Churchill Suite

The clifftop setting lets Reid's Palace offer what few island hotels can: a tidal pool set directly into the rock, filled by the Atlantic itself, alongside heated pools and a private bathing deck for guests who want the sea without the tide. Inland, the gardens run on shaded pathways lined with palms, close enough to the cliff edge to stay within earshot of the ocean throughout. Of the 158 rooms, the Churchill Suite carries the most history: Winston Churchill stayed in it to paint and write his memoirs, and the hotel still describes it as the finest room in the house, a claim the view alone goes some way to justifying.