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Reid's Palace, Funchal 
$$$$

139 Estrada Monumental
Funchal , Madeira
Portugal
Tel: 351 291 717171
reservations@reidspalace.com
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Concierge.com's insider take:

Situated in a prime cliff-top location, Reid's is the place to stay. Considered one of the world's top hotels for more than a century—just about every politico, celebrity, and member of European nobility since 1891 has stayed here. Its hushed colonial ambience isn't appropriate for the shorts and flip-flops crowd, but if you like the idea of dressing up for a few days, sipping dry martinis on the terrace, and waltzing under the stars, Reid's Palace is ideal—assuming you can pony up the price tag (room rates start around $475). The 130 Superior and Premier rooms—there is no "standard" category, natch—are decorated in a contemporary style; you have to upgrade to suite to get antique ambience. But you don't come for the décor; you come for the sheer elegance of an Orient Express property, the three swimming pools, the beauty and health spa, water sports, deep sea fishing, tennis courts, five restaurants (See “Eating” for more on The Dining Room), and the other accoutrements and amenities of five-star luxury.

Appeared in the Condé Nast Traveler Gold List, a directory of the world's best hotels and resorts, in 2010, 2006

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