Casa Velha do Palheiro is the grand-country-house option in this list. It stands in the hills east of Funchal, on the Palheiro estate, in a landscape of gardens, camellias and tall trees, high enough above the sea that the air is fresher and cooler than in the city. The house dates from the age when British merchant families built hilltop retreats on Madeira, and the hotel keeps that spirit: a collection of rooms and suites in a historic manor and its outbuildings, set among lawns and flower beds, with a long terrace for afternoon tea and a restaurant that makes the most of local produce. It belongs to the Relais & Châteaux group, which signals a focus on service, food and a sense of place.
Location and getting around
The hotel is in the São Gonçalo hills, a short drive from the centre of Funchal and next door to the Palheiro Gardens, one of the loveliest gardens on the island. A taxi into town takes around ten to fifteen minutes, and the hotel can help arrange transfers and tours.
Because the setting is high and green, there is no beach on the doorstep, but the south coast is close and the airport is under half an hour away. Guests who want to explore the island can hire a car or join a tour with hotel pickup, and the hills behind the estate offer easy walks.
The rooms
Rooms and suites are elegant and traditional, with antique-style furniture, fabrics in soft colours and views over the garden or the valley. Some are in the main house and others in separate buildings, so ask for the kind of atmosphere you prefer. Bathrooms are generous and the beds are comfortable. Expect an upscale, quiet feel rather than a busy resort, with attentive staff and little noise. Dining takes place in the main restaurant and on the terrace, and afternoon tea is a pleasure in good weather.
Who it suits
Couples, honeymooners and garden lovers who want a peaceful, refined base and are happy to be a short drive from the city. It is also a natural pairing with a day at the gardens, a round of golf on the nearby course or a long lunch followed by an afternoon by the pool. Families with older children are welcome, but the atmosphere is calm, so it suits those who enjoy quiet evenings.
Good to know
Because of the altitude, the weather can be cooler and mistier than on the coast, so bring a layer in the evenings. Check what is included in your rate, ask about transfers and book dinner in advance in busy periods. If you want to be within walking distance of restaurants and the old town, a central hotel is a better fit, but for a romantic, garden-filled retreat this is one of the most atmospheric choices on the island.
Why stay here
- ✓Historic country-house setting
- ✓Palheiro estate gardens
- ✓Outdoor swimming pool
- ✓Spa and wellness area
- ✓Restaurant and terrace
- ✓Afternoon tea
- ✓Quiet hillside location
- ✓Relais & Châteaux member
Good questions
Where is Casa Velha do Palheiro?+
It is in the São Gonçalo hills east of central Funchal, beside the Palheiro estate, about ten to fifteen minutes from the centre by taxi.
Is Casa Velha do Palheiro near the beach?+
No. It is in the hills above the city, so guests use the pool or drive to the coast, which is a short distance away.
Who is Casa Velha do Palheiro best for?+
It suits couples, honeymooners and garden lovers who want a quiet, elegant retreat rather than a seafront resort.
