Just back from 7 nights at the Ocean Gardens. The hotel and grounds are immaculately kept. We booked via Trivago and had a good deal on 7 nights B & B with an upgraded room - the views from the superior rooms are outstanding and have the sun from midday till sunset. Bed was a bit on the hard side but had no problems sleeping. Bedding and towels changed daily and the room, although a bit tired in places, was very clean. Plenty of hot water, hairdryer and fridge provided in the room but no tea or coffee making facilities so take your own travel kettle if you like a cuppa! Breakfast was ok although same each day which would definitely be a problem for longer than a 7 night holiday. We ate twice in the a la carte restaurant - good service and again great views but food a bit hit and miss and on the expensive side.
We knew before booking that this hotel was out of town and we did go into Funchal each day, sometimes by bus and sometimes by taxi - travel does add up so you need to be aware of this if you decide to stay in the Ocean Gardens. There is a snack bar only about a 5 mins walk downhill from the hotel, which we went to a couple of times for cheap eats and drinks - well worth the walk - no menu but the owner will cook you whatever fresh food she has on the day. As others have mentioned, there is no footpath and you will need to walk on the edge of the road - we didn't find this a problem and the road is well lit.
All in all, a great place to stay in Madeira as long as you don't mind a bit of traveling - enjoy!