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Reid's Palace, A Belmond Hotel vs Casa Velha do Palheiro

Old-school charm on the cliff or in the gardens. Reid's Palace, from about €825, if you want afternoon tea over the bay and a MICHELIN-starred dinner at William; Casa Velha do Palheiro, from about €320, if you would rather have 37 rooms on a 150-hectare estate with gardens and golf.

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

Reid's Palace, A Belmond Hotel

Funchal's grand hotel of 1891 on the cliff above the bay, with afternoon tea on the terrace, pools above the sea and a starred dining room.

€€€€From about €825 a night

Choose Reid's Palace, A Belmond Hotel if

  • A first trip to Madeira done in style
  • Afternoon tea and gardens
  • Couples and special occasions
  • Winter sun in Funchal

The catch

The entry Superior Rooms are 23 to 26 m² with a partial sea view; the full view of the bay starts with the Deluxe Sea View

Casa Velha do Palheiro: The estate and golf course above FunchalThe hideaway

Casa Velha do Palheiro

A restored 1804 hunting lodge on a 150-hectare estate above Funchal, with gardens, golf and a MICHELIN-listed dinner at the door.

€€€From about €320 a night

Choose Casa Velha do Palheiro if

  • Couples
  • Golfers
  • Garden lovers
  • A quiet base with a car

The catch

Funchal is a taxi ride, not a walk: the Sé is 18 minutes by car off-peak but about 70 minutes on foot, much of it steep

Which of our lists each one is on

Best forReid's Palace, A Belmond HotelCasa Velha do Palheiro
Best family hotels in MadeiraOn the listNot on the list
Best spa hotels in MadeiraNot on the listOn the list
Best quiet hotels in MadeiraOn the listOn the list
Best hotels with a view in MadeiraOn the listNot on the list
Best hotels for food and drink in MadeiraOn the listOn the list

Both hotels on the same scales

Reid's Palace, A Belmond HotelCasa Velha do Palheiro

ClassicContemporary
InternationalStrong sense of place
Smart spendSplurge
Food secondaryDestination dining
QuietLively
Explore outsideStay at the hotel
Central & walkableRemote escape

Reid's Palace, A Belmond Hotel

Area
Funchal, Portugal
From the centre
1.6 km
Airport
24 min from FNC
Price band
€€€€
Typical rate
From about €825 a night
Rooms
126
Opened
1891
Pool
Outdoor
Beach
None
Spa
Yes
Adults only
No
Kids club
Yes
Restaurants
4
Parking
Yes
MICHELIN Guide
Two MICHELIN Keys (2025)
Selected by
Independent research
Last checked
October 2026

Casa Velha do Palheiro

Area
São Gonçalo, Portugal
From the centre
4 km
Airport
20 min from FNC
Price band
€€€
Typical rate
From about €320 a night
Rooms
37
Last renovated
2023 (opened 1997)
Pool
Indoor and outdoor
Beach
None
Spa
Yes
Adults only
No
Restaurants
2
Parking
Yes
Selected by
Independent research
Last checked
October 2026

The verdict

Old-school charm on the cliff or in the gardens. Reid's Palace, from about €825, if you want afternoon tea over the bay and a MICHELIN-starred dinner at William; Casa Velha do Palheiro, from about €320, if you would rather have 37 rooms on a 150-hectare estate with gardens and golf.

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Questions people ask

Good questions about Reid's Palace, A Belmond Hotel vs Casa Velha do Palheiro

Reid's Palace, A Belmond Hotel or Casa Velha do Palheiro?

Old-school charm on the cliff or in the gardens. Reid's Palace, from about €825, if you want afternoon tea over the bay and a MICHELIN-starred dinner at William; Casa Velha do Palheiro, from about €320, if you would rather have 37 rooms on a 150-hectare estate with gardens and golf.

Is Reid's Palace, A Belmond Hotel worth it?

Funchal's grand hotel, on its cliff since 1891, for anyone who wants the terrace, the gardens and the bay more than a beach. Check availability for the Deluxe Sea View Room. A classic grand hotel with a strong sense of Madeira, where the terrace, the gardens and the pools above the sea are the holiday, and the price is top of the island. Funchal is a walk or a free shuttle away.

Does Reid's Palace, A Belmond Hotel have a pool or a beach?

It has an outdoor pool. There is no beach; the nearest is a drive away.

Is Casa Velha do Palheiro worth it?

A historic quinta for gardens, golf and long dinners, a taxi ride above Funchal rather than in it. Check availability for the Double Golf Wing. A small, historic country house in gardens and woodland above Funchal, where the estate, the spa and dinner are the holiday and the city is a taxi ride down. It suits slow days, golf and walks more than nights out.

Does Casa Velha do Palheiro have a pool or a beach?

It has indoor and outdoor pools. There is no beach; the nearest is a drive away.