We chose this hotel from Thomson's Small and Friendly brochure and believe me they were not wrong. The hotel is perfectly situated in the old town with numerous restaurants within a couple of minutes walk and everything you need in central Funchal just a few minutes further. The bus stops and cable car are just down the road too. You cannot fault the location.
The hotel itself has an excellent pool area and a small bar. The staff, including the owner, are very friendly and helpful. Our rooms were very good with plenty of room, air conditioning, a balcony and a sea view(just about). They only serve snacks apart from breakfast but the breakfasts are wonderful. The stocks of fresh fruit, breadand rolls, cheese and cold meats and hot food are constantly being replenished even when the plates are still half full.
On one of our restaurant visits the ladies were given a bird of paradise flower, unfortunately there was nowhere really appropriate to store them. When we returned to our rooms later we found that the staff had found vases and a little extra foliage for them. That's the sort of touch that makes the difference. One of our co-residents had a birthday while we were there and was given sparkling wine with his breakfast.
We don't usually book with package companies but this holiday was something special so we may have to go through Thomson again.

Possibly the best small hotel we have ever stayed at. Booked it on the basis of the Trip Advisor reviews and found them all to be true. Most courteous and helpful staff ever encountered. Lovely room with balcony and sea view (pay a little extra for the higer rooms for the sea view). Great ,intimate and relaxing pool area with terrace alongside where we had our breakfast each morning and night cap each evening! Lovely breakfasts by the way. The hotel is spotless and in a perfect location - a private entrance at the rear leads directly into the old town with a wide choice of restaurants and bars within 5 minutes walk. The fenicular is also only 10 mins away. We highly recommend this hotel without hesitation. Small and friendly but with all the facilities you need and perfect location. The hotel will arrange for you to be met at the airport which for four of you is very economical at 30 euros. Easiest to simply book by 'phone with email follow - all staff speak English. No credit card details were asked for on the 'phone or email - simply paid on arrival.

Our first time to Madeira,and we had read the very good reports on Trip advisor about this hotel. The booking was direct with the hotel, travelled with easy jet and caught the 'aerobus' from the airport to the town centre.The hotel reception was friendly, gave us a welcome drink and advised us on the best local restaurants. Room 301 was clean, comfortable, adequate balcony with chairs and a table with a splendid sea view. The slightly cheaper rooms were not so high, so no sea view but a view over the pool and lush garden.
Breakfast was very good, choice of hot and or cold - hot was typically a fried egg with bacon or sausage, and often pancakes as well. Cold was a great typical continental spread, fresh breads, croissants, ham, cheese and lots of fruit salad.
The hotel is in a very quiet (little traffic noise) area of the old town, a short walk from the seafront and harbour areas,and within literally five minutes walk were about a dozen restaurants. We tried about five, and we did not have a bad meal in any of them. The local fish, espada, is fantastic.The Portugese wines available were good and not too pricy, and typically you would be given a free Madeira wine as a starter
Public transport is cheap and easy to use.. Weather was excellent, 24 degrees some days.Would we go again? Yes.
Would we recommend the hotel? Definitely. One of the best all-round value hotels we have stayed in, and excellent food, reception and service staff could not have been more helpful. Plus, although it is a modern hotel, it is family run. Mr Dias is visible and takes a keen interest. My wife had a birthday during our stay and Mr Dias arranged for a beautiful flower arrangement to be placed in our room for her. a much appreciated gesture.
If you book this hotel you will not be disappointed.

This hotel is without a doubt a gem - an oasis located in the old town area of Funchal. Have just spent 5 sun-filled days based at the Albergaria Dias and will most probably return there often in the coming years. The hotel, the location, the staff all are charming and friendly. Rooms (35 in total) are modern, clean and all overlook the delightful garden area and swimming pool and the sea beyond (we were on the 2nd floor). The breakfasts were super as was afteronn tea by the pool sampling the banana cake. The hotel owner, Mr Dias, was a charming host - always available yet remaining in the background. Access to the old town and beyond is via a private access-controlled lane at the side of the hotel (check out the lizzards!) where within minutes you are deposited amongst the old streets with some fine restaurants with street tables - all reasonably priced. We ventured into central Funchal on the saturday night but much preferred the feel of the old town ambience. We booked direct with the hotel and flew with easyJet from Bristol - no hassle. The hotel is approx. 20 minutes from the airport and they organised a friendly taxi driver (Virgil) to pick us up - door to door, cost 25 euros.
Funchal tips; take the open top bus tour early on to get your bearings. Cost 10 euros each but you can then use the ticket all day on the normal yellow buses. Vist the Botanical Gardens - fabulous (3 euros). Take the cable car - fantastic. Visit St Catarina gardens (free) at the far end of the sea front - wonderfull. We are so glad to have discovered Madeira. No stag or hen do's, no binge drinkers, no brit-yobs swearing and throwing-up in the streets. Hope it stays this way for many years to come. Enjoy!