Stayed here in November 2012 for a week while visiting friends and family. Being originally from Madeira I knew what to expect. The Hotel needs updating and their food is not great but you pay peanuts, so don't expect caviar. Overall friendly Staff and clean room, that was the only think I need it.
There are plenty of good restaurants and bars in the area which is one of the bests in Funchal so you can go to a different one every night. Don't put your expectations too high and you won't be disapointed.

I would stay here again if the price is similar to what I paid.

We had 3 weeks there last month, Jan 2013 there were seven of us in our party and we all enjoyed it, yes the hotel needs some TLC but the views were glorious from our balcony and the food was good if not a lot of choice, rooms clean and spacious, staff were exceptionally helpfull and friendly especially the dining staff and one reception lady who had been there since the hotel was built she was a mind of information. so if you want value for money and a good basic base the gorgulho hotel is a fair opption.

The Haines Richmond Bateman Allingham ( GANG)

Arrived lunchtime Friday transferred to another Hotel by Saturday am. Rooms filthy and smelly. Bed linen dirty and stained. Pillows smelt of stale urine. DISGUSTING DISGUSTING DISGUSTING. The Locals all agree that this Hotel should be closed and is locally regarded as a "Cancer" of the area, the locals words not mine. This hotel may only be graded as a basic 3 star Hotel but cleanliness surely is a necessity not an optional extra.

Studio had 2 hotplates and full sized fridge, but no kettle, toaster or microwave. However we managed very well with the limited equipment and would book again if money was tight. Staff were helpful, towels and bedding changed every other day. Plenty of sunbeds at the pool, pool towels supplied.