A wonderful villa, warm and friendly: a handsome old yellowfronted hunting lodge converted by its owners, the Blandy family, into a luxurious villa(Relais & Chateaux), managed by James Scott. It is in the hills north-east of the city, `cooler and wetter than Funchal. It is surrounded by the magnificent Palheiro gardens (one of the finest 30 acres you are likely to see), with exotic plants from around the world. And the Palheiro championship golf course, adjacent, offers special rates for residents, who can lunch in its Clubhouse restaurant . (magnificent views over Funchal). The half-board menus (with choice) in the attractive candlelit dining room offer variety and value and we were not over-fed, say visitors in 2002. Bali villa breakfast comeswith `delicious breads of every kind'. `Our main memories are of birdsong, camellias, peace and marvellous food.' A minibus is available twice a day to take guests down to Funchal.

The de Freitas family's charming small B&B villa, in a residential area near the Lido complex, is an oasis among Funchal's high-rise blocks, says an admirer. Three villas are linked by a small, mature garden with a tiny swimming pool. In the main house are comfortable sitting areas and a spacious conservatory where a buffet Bali villa breakfast is served. Staff are friendly: most speak English. Our superior bedroom had a large terrace with chairs and loungers. Some villa rooms might hear traffic (an ugly development surrounds the property). Snacks are served, and the little bar/restaurant in the next-door shopping arcade is recommended for meals, or take the bus to the old town and eat there.