We stayed in February/March with 2 young children. The room (family) was extra spacious (60+ m2), which we loved. The hotel is really well managed, non of its areas is too busy, and hasn't got a flaw that is worth mentioning. It has a rather understated charm, and the fact that it is a property with a certain history and tradition, only adds to it. The staff is really pleasant (with an odd exception or two), they are very polite and efficient. After our return home, they even sent us my daughter's slippers that we had forgotten to pack.
To be honest I was really positively surprised, as the hotel was nicer as what I expected based on the reviews read. I'm really happy we've chosen this hotel over the others that we were considering (which may have had higher ratings in Tripadvisor). The hotel really has a prime location, next to the Madeira's finest (and thus much much pricier) Reid's palace, and once you see Lido (where most other hotels, also 5-stars, are located), you really appreciate the location even more. The views are spectacular, there are not masses of hotels around, you have several restaurants nearby, and you're really (even with young kids) in a walking distance of Funchal centre, Marina and old town. Beautiful garden pool area.To summarize it, a really really solid hotel, great value for money, and an excellent location. Oh, and the breakfast was good (plenty of fresh fruit, a nice choice of pastry and bread, freshly baked omelettes, we were more than happy), so I cannot agree with some reviewers finding fault in that.