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Best hotels for food and drink in Madeira

Reid's Palace, A Belmond Hotel, for William, which has held a MICHELIN star since 2016, and afternoon tea on the terrace over the bay; and Casa Velha do Palheiro, for Oxalis, listed by the MICHELIN Guide, where Gonçalo Bita Bota cooks island produce, some of it from the hotel's own kitchen garden.

2 of our ten · Hand-pickedHotels cannot pay to be hereLast checked: October 2026

9.4/10

4,200+ Expedia guest reviews of the 8 hotels we list

Average of the guest scores Expedia publishes, weighted by review count; read 30 October 2026.

At a glance

  1. Reid's Palace, A Belmond Hotel: Reid's Palace on its cliff above the bay

    Reid's Palace, A Belmond Hotel

    MICHELIN-starred William and afternoon tea with 38 teas

    Funchal · From about €825 a night

    See prices on
  2. Casa Velha do Palheiro: The estate and golf course above Funchal

    Casa Velha do Palheiro

    Oxalis, MICHELIN-listed, with produce from the kitchen garden

    São Gonçalo · From about €320 a night

    See prices on

What we looked for

Eating well in Madeira does not need a hotel: Funchal's old centre and the road of hotels out to the Lido are full of good tables. These two are here because their dining rooms are worth booking in their own right, not because they are convenient. Both build their menus on Madeiran produce, from fish off the island's coast to vegetables from the garden.

They suit different evenings. Reid's Palace is on the cliff at the western edge of Funchal Bay, in the Hotel Zone, with a starred dining room, an Italian terrace, afternoon tea and the hotel zone's restaurants within 10 minutes on foot. Casa Velha do Palheiro is a country house about 500 metres up at São Gonçalo, where Oxalis is the one dinner on the estate and the city's tables are 14 to 20 minutes away by car. Choose Reid's for variety and the bay; choose Casa Velha for one serious dinner a night in the quiet of a garden estate.

Reid's Palace, A Belmond Hotel: Reid's Palace on its cliff above the bayThe icon

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Reid's Palace, A Belmond Hotel

Funchal, Madeira

William, named after the hotel's founder, has held a MICHELIN star since 2016. It serves two tasting menus, William and Discovery, built on Madeiran produce such as fish from the island's coast, with part of the menu inspired by the hotel's own garden, behind full-length windows over the bay. Dinner runs from Tuesday to Saturday, 19:00 to 23:00.

The rest of the day is just as considered. Afternoon tea on the terrace over the bay, with seatings at 14:30 and 16:30, brings finger sandwiches, scones and Madeiran pastries with a choice of 38 teas or a glass of champagne. Ristorante Villa Cipriani cooks Italian on a terrace every evening, Brisa do Mar serves seafood and Portuguese cooking in the open air in season, and the 1891 Bar has live music until midnight. Breakfast on the Pool Terrace comes with fresh detox juices and sparkling wine.

Deluxe Sea View Room at Reid's Palace, A Belmond Hotel: a large bed with a floral headboard facing open doors to a furnished balcony over the sea

The room to book

Deluxe Sea View Room

about 26 to 31 m²€974 a night

Its large furnished balcony faces the bay full on, the same view William's windows frame, for a drink before dinner or coffee after it.

Every room, and why

Book William for your first free night between Tuesday and Saturday, and reserve the tea terrace when you book the room.

€€€€From about €825 a night

See prices onCheck availability onSee hotel
Casa Velha do Palheiro: The estate and golf course above FunchalThe hideaway

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Casa Velha do Palheiro

São Gonçalo, Madeira

Oxalis is the reason to stay in for dinner. Gonçalo Bita Bota cooks modern Portuguese food from island produce, bought from local farmers and fishermen and picked from the hotel's own kitchen garden, in a classic dining room with an open kitchen. The menus change with the seasons, the MICHELIN Guide has listed it since 2025, and dinner is served every night from 7pm to 10pm.

The estate adds the daytime meals. The Casa de Chá in the Palheiro Gardens, three minutes through the grounds, serves lunch and cake from 10am to 5pm, and Vista Balancal at the golf clubhouse has a terrace over Funchal Bay, from noon. Breakfast is a buffet in the Casa Velha dining room with eggs cooked to order, included in the standard rates. Guests single out the warm, attentive staff, and with 37 rooms the house stays small.

Double Golf Wing at Casa Velha do Palheiro, Relais & Châteaux: a king bed with a wooden headboard on a teal rug, striped armchairs and French doors with floral curtains

The room to book

Double Golf Wing

about 32 m²€409 a night

The largest double, with a bath and a separate shower, a calm room to come back to after a long dinner at Oxalis.

Every room, and why

Book Oxalis for your first night before you travel, and pack something smart casual: no sportswear, flip-flops or hiking gear.

€€€From about €320 a night

See prices onCheck availability onSee hotel

How to choose

Your tripBook
You want a MICHELIN-starred tasting menuReid's Palace, A Belmond Hotel
You want afternoon tea over the bayReid's Palace, A Belmond Hotel
You want garden-to-table cooking on a quiet estateCasa Velha do Palheiro

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Questions people ask

Good questions about Madeira

Which hotels in Madeira have a MICHELIN-starred restaurant?

Among our ten, Reid's Palace, A Belmond Hotel is the one to book for a starred dinner: William, named after the hotel's founder, has held a MICHELIN star since 2016 and serves two tasting menus, Tuesday to Saturday evenings, over Funchal Bay. Casa Velha do Palheiro's Oxalis, where Gonçalo Bita Bota cooks island produce, has been listed by the MICHELIN Guide since 2025. In Funchal, Casal da Penha holds a Bib Gourmand and is 10 minutes on foot from Reid's Palace.

How much is the tasting menu at William?

The William tasting menu is €190 a head and the Discovery menu €160, both before wine. William serves dinner only, from Tuesday to Saturday, 19:00 to 23:00, behind full-length windows over the bay at Reid's Palace, A Belmond Hotel. Both menus are built on Madeiran produce, such as fish from the island's coast, with part of the menu inspired by the hotel's garden. Book your first free night between Tuesday and Saturday.

Can non-residents have afternoon tea at Reid's Palace?

Yes. Afternoon tea at Reid's Palace, A Belmond Hotel is open to non-residents, served daily on the terrace over Funchal Bay with seatings at 14:30 and 16:30. It brings finger sandwiches, scones and Madeiran pastries, with a choice of 38 teas or a glass of champagne, and the dress code is smart casual. Guided tours of the hotel's subtropical gardens run each week, and make a good start to the afternoon.

Can outside guests book dinner at Oxalis?

Yes. Oxalis, the dining room at Casa Velha do Palheiro, takes bookings from non-residents and serves dinner daily from 7pm to 10pm. The dress code is smart casual, with no sportswear, flip-flops or hiking gear. The hotel is about 500 metres up at São Gonçalo, and off-peak by road the Sé is 18 minutes away, so most visitors from Funchal come by taxi or car.

Is it easy to eat out in Funchal from these hotels?

From Reid's Palace, A Belmond Hotel, yes: the hotel zone has good tables from 3 to 10 minutes on foot, including Avista and Casa das Espetadas, and the hotel runs a free shuttle into the centre. From Casa Velha do Palheiro, the city's restaurants are 14 to 20 minutes by car, so evenings in town mean a taxi each way. The estate itself has the Casa de Chá in the gardens by day, Vista Balancal at the golf clubhouse until 8pm, and Oxalis for dinner.

How did you choose these hotels?

Independently, through extensive research, trusted sources and first-hand visits. Hotels cannot pay to be included, and every one of the ten has to exist for a different reason.

More ways to choose in Madeira

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Prices are a guide from our last check, not live rates.