Inside Reid's Palace, Madeira's Most Iconic Luxury Hotel

Discover the legendary Belmond property where Winston Churchill painted, clifftop pools await, and Portuguese island charm meets five-star elegance

Reid’s Palace Hotel perched above the Atlantic Ocean in Funchal, Madeira
By Gwen Pratesi
December 19, 2025·4 min read

As I pulled into the tree-lined driveway and saw the iconic blush façade of Reid’s Palace, A Belmond Hotel, I knew I was in for a real treat. But it wasn’t until I wandered through the light-filled lobby and onto the open-air terrace that I realized how magical this place was.

The legendary property, dating to 1891, was built as a luxury hotel by William Reid, a Scotsman who made his fortune exporting Madeira, the fortified wine for which this subtropical island, part of a Portuguese archipelago of the same name off North Africa, is known. He chose the perfect location for his sumptuous hideaway. Perched high atop a cliff, Reid’s Palace overlooks terraced gardens lined with bougainvillea and palm trees. Down below beckon the glistening waters of the Atlantic Ocean.

Outdoor terrace dining overlooking the Atlantic at Reid’s Palace, Madeira
Alfresco dining at Reid's Palace is served with an ocean view; photo courtesy of Tyson Sadlo

Timeless elegance permeates the hotel’s interior and exterior spaces, including its Michelin-starred dining venue the William Restaurant, which features innovative Madeiran and Portuguese cuisine, and swanky cocktail bar 1891. Winston Churchill was inspired to paint from the hotel’s balcony and to write his memoirs here, and an array of other notable guests, including actors Gregory Peck and Roger Moore, Irish playwright George Bernard Shaw and Empress Elisabeth of Austria, have visited.

Before bedtime, a carafe of Blandy’s Madeira and the traditional Madeiran cakes queijadinha (a petite cheesecake produced with fresh local cheese) and bolo de mel (made with honey, spices and Madeira) awaited me in my room.

Each morning, I awoke to the sunrise and warm sea breezes and headed down to the lavish buffet breakfast at the Pool Terrace. The expansive deck, lined with green and white lounge chairs and umbrellas, beneath the backdrop of the towering tiers of the hotel, resembled a movie set. Below, rugged cliffs spilled down to a seaside deck with a tidal pool and a dive platform, accessible via flights of stairs and an elevator.

While I wished I could have spent my entire time at the property enjoying the restaurants, lounging by the pools, sipping Champagne on the terrace and sampling flavors from Gelateria San Giorgio, I had only three days on Madeira.

Traditional thatched houses in Santana village, Madeira Island
Traditional casas de Santana reflect the heritage of Madeira's archipelago; photo courtesy of Madeira Tourism

A private 4 x 4 tour proved to be the ideal way to explore the island and its entrancing volcanic landscapes, natural saltwater swimming pools formed by volcanic rocks, jagged cliffs rising from the ocean and lush vegetation. As part of the tour, I enjoyed lunch in the northeastern coastal town of Santana at a restaurant overlooking the Atlantic and surrounded by gardens and vineyards.

The tour also took me to some of the Casas de Santana, the centuries-old triangular-shaped houses with thatched roofs that were once typical of the area, before stopping at Cabo Girão, the highest promontory in Europe, on the southern coast.

Carreiros preparing traditional wicker toboggans in Monte, Funchal, Madeira
Carreiros do Monte prepare their sledges to transport tourists on thrilling rides

Of course, I couldn’t leave the capital city of Funchal without taking a ride down the Caminho do Monte in a traditional wicker and wooden “sledge.” This sleigh-like vehicle is guided by two men, known as Carreiros do Monte, dressed in white and wearing rubber-soled boots and straw hats. I laughed all the way to the bottom as the sledge careened down winding roads, which were worn slick by more than 170 years of such rides. Often, the sledge raced ahead of the carreiros, who used their boots as brakes to control the sledge’s speed and direction.

Next time I visit Reid’s Palace, I’ll explore Madeira at leisure, spend days poolside with a fine Poncha (Reid’s signature cocktail, a delightful blend of gin, Galliano, strawberry liquor and two types of citrus)—and take a sledge ride down the hill just one more time.



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