Reid's Palace, Funchal, Madeira $$$$
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 centuryjust 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 idealassuming you can pony up the price tag (room rates start around $475). The 130 Superior and Premier roomsthere is no "standard" category, natchare 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.