There's a great choice of accommodation in Madeira but for peace of mind, facilities and service the ones to go for are certainly the 4 or 5 star hotels and 'Quintas'. Rooms are generally listed with 'sea' or 'mountain' (inland) views, sometimes both. Mountain view rooms are generally a bit cheaper but some offer a great view; the climate is often visible with clouds and mist on the higher points making for a dramatic and interesting backdrop. So, if you spend a lot of time on the balcony it pays to find a room with a view you like, but if you only sleep at the hotel then save your money and go for a room without the premium of a stunning view.
Hotels
My personal favourites are the Tivoli Madeira and the Golden Residence; the rooms are excellent, breakfast is fine and the staff are just that bit happier than most. Both these hotels can provide a variety of rooms, views and facilities.
Quintas
These are Madeiran Manor Houses. They are generally smaller than hotels, offering a more personal touch. I like the Quinta Perestrello for its central location between Old Funchal and the vibrant Lido. Views are mainly 'mountain' across Funchal to Canico and the food is excellent.
Update:
Had a perfect 2 weeks in a spacious apartment in the very laid-back Madeiran town of Caniço, between the airport and Funchal. You will need a hire car to get the best of it here as the hills are steep, but within a short drive are the famous Village Pub (thankfully not an English pub) with a fine selection of international intoxicants and a fantastic fish restaurant at Reis Magos; the house wine is excellent. In fact I was so impressed with the accommodation that I had another 2 weeks there the following year and intend to stay again!
Details on the Canico Apartment here.
Resources:
Madeira Hotel Guide
Madeira Island Hotel Directory
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People should read this.
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