Reid's Palace, A Belmond Hotel

Reid's Palace has stood on its clifftop above Funchal since 1891 — the hotel that taught Madeira what grand tourism meant. William Reid, a Scottish cabin boy turned hotelier, built it into the address of kings, exiled emperors and film stars; Churchill wrote memoirs here and Shaw famously learned to tango in its halls.

Ten acres of subtropical gardens terrace the cliff to the sea. The 126 rooms and suites keep their Edwardian poise — antiques, ocean balconies, marble — alongside three outdoor pools, a private bathing platform, the Maré Spa and the celebrated afternoon tea served on the checkered terrace.

Dining crowns the property: the Michelin-starred William Restaurant, Ristorante Villa Cipriani on the cliff edge, and al fresco Brisa do Mar beside the pools. Still the island's definitive grand hotel — now under Belmond's quiet exactness.