Picolo recommends · Hotel in Funchal, Madeira, Portugal
Reid's Palace
Afternoon tea on a terrace above the Atlantic, in the grand hotel that has looked over Funchal bay since Victorian times.
The teapot arrives, the cake stand follows, and below the terrace the Atlantic rolls in against the rocks. Afternoon tea at Reid's Palace has been a Madeira ritual for generations, and it still sets the pace of the place.
The pink hotel sits on a cliff at the edge of Funchal, the island capital, surrounded by gardens full of subtropical plants. It is a classic grand hotel, now run by Belmond, built for long stays and slow days.

Picolo’s verdict
Why we chose Reid's Palace
We choose it for the sense of occasion. Few hotels in Europe have kept their old style this well, and the setting on the cliff, with gardens and sea on every side, is hard to match on Madeira.
It is formal and traditional, which some guests love and others find stiff. There is no sandy beach, and if you want a lively scene or a modern design hotel, look elsewhere on the island.
What you get
- Subtropical gardens
- Afternoon tea on the terrace
- Pools above the sea
- Restaurants on site
- Classic grand hotel service
A day at Reid's Palace
- Morning
- Breakfast on the terrace with the ships in Funchal bay.
- Midday
- A walk into Funchal for the old town and the market.
- Afternoon
- Tea and cake as the light softens over the ocean.
- Evening
- Dinner in the hotel, dressed up a little for the occasion.
Location
Funchal, Madeira, Portugal
Open in MapsQuestions about Reid's Palace
Where is Reid's Palace on Madeira?
It stands on a cliff at the western edge of central Funchal, so the old town and harbour are within reach on foot or by a short taxi ride.
Can non-guests have afternoon tea at Reid's Palace?
The tea is one of the hotel's best-known traditions. It is wise to check availability and book a table in advance, especially in high season.
Does Reid's Palace have a beach?
No. The hotel is on a cliff, and swimming is in the pools above the sea rather than on sand.

Updated 6 Nov 2026All articles
How Picolo chooses
Our editors pick every hotel themselves, and most of them we have stayed at. No hotel can pay to be included or ranked higher. When you book through our links, Hotels.com pays Picolo a small commission. It never changes the price you pay, and it never decides what we write.

