We stayed at The Vine Hotel at the beginning of December. The weather was fine, no rain, sometimes cloudy but constant 20 C plus and we were never cold, even in the evenings.
The hotel is superb and one of the best we have stayed in. We had a grand deluxe room with double aspect and a view of the harbour (room 503 I think). It is definately worth asking for a room higher up as the views are incredible.
The hotel is above a shopping centre which sounds odd, but is not a problem as there is never any noise. The hotel is very clean and the breakfast is one of the best we have had in a continental hotel.The roof top pool and sun terrace was spectacular, we seemed to have it to ourselves most days!
The little touches such as sweets, fruit and chocolates left in our room randomly made us feel special. The complimentary minibar was also a nice touch. All the staff were friendly and seemed to speak most languages.
I would recomend this hotel and we will be returning next year!

Being located nearer to old town (and the good restaurants) is very, very nice. The hotel itself is also good, but I don't normally spend that much time within hotels anyway during my trips if I can help it. The rooms are spacious, with perhaps excessive focus on design (for instance, shower room door that you can't close from inside due to handle being only outside, and excessive amount of electronic buttons, and motion sensors around ;>).

Still, I have enjoyed the stay so far (middle of the trip), the breakfast buffet is good (and there are cooked additional options), mini-bar contents by default are included in price (refilling costs), and the location is just brilliant.

Would I come here again? Probably yes, at least if I were coming to Funchal in general.

We stayed at The Vine Hotel the first week of December and had a great time! They thought of all the tiniest details, which made our trip way more enjoyable. They gave us a map of Madeira and told us some good places to see, put candies and chocolates on our bed every day, catered to our every question and need. It was great! I loved that the minibar was complimentary, it made us feel like rockstars! The pool and bar on the rooftop are very cool and show you a great view of the whole city and bay. We also went to the Uva restaurant on the roof of the hotel the first night and were treated excellently. They never made us wait for any service, we got a complimentary first dish, great wine and the food was absolutely fantastic. If you go there, try the chicken cream soup and the steak! The only thing I could think of that wasn't so great about the hotel was the bottles of shampoo etc. that are in the shower. They were impossible to open, especially with wet hands, and since they were square, I couldn't squeeze anything out of them. Other than that, no complants whatsoever! Location of the hotel is great, right in the center, so we didn't have to walk far. The cherry on the cake was their great hospitality and manners. I got tweeted by the hotel after a few tours and trips we made to ask how they were and to wish us a nice day the next day. Would definitely stay here again if I go back to Madeira :)

Positive:
- Service & hospitality
- Rooms
- Location
- Food!
- Breakfast buffet (very big and great eggs!)

Negative:
- Shampoo bottles are impossible to open
- Shower door didn't close all the way, maybe just stuck?

The Pros:
This hotel is a great place to stay, the staff is very friendly and helpful. Sleeping comfort is great, location is great, the breakfast is wonderful - asked for a bit stronger coffee and was offered a double espresso, omelets with only egg whites and home made yoghurt is standard, freshly squeezed orange juice.... just everything you want and service with a smile.
The gym is a normal gym, you have full access but share it with all the people who are members, meaning you will have lots of classes to attend (spinning, body pump, Pilates etc). but it might also be more crowded.
The room (we had a junior suite) was big, great, big windows facing two sides gives great view and light. The design is a bit different, stylish and modern.
Free Internet, fast and worked fine, but you have to log in every time, as it will not remember you.
The cons:
The rooms are not very practical... the bathtub is behind the bed, very romantic, but if you like your bedroom to be colder than your bathroom you might have a trouble!
There is a glass door to the toilet and shower, and as several others have mentioned: yes you can see through the glass.
The shower is stylish but leak water so be prepared for lots of water in you room after using it.
In spite of the big room, you end up sitting on your bed, due to the planning.
The coffee maker is nice, but the hotel offers you 3 shots (one being decaffeinated) and there after you have to pay 1,5 euro for a coffee. Which is more than you pay if you get out to have a coffee.
All in All - we had an offer where we paid 800 USD for five nights, breakfast and internet included. Great place to stay and will use again if we are in Funchal again.