Have just returned from a week in this hotel with my wife. Whilst in it's day it must have been really grand, I'm afraid the Palacio has lost its way. The main problem is that the hotel is closing in October 2006 for at least 2 years for a refurb. The staff have no idea of their future and are generally surly and totally demotivated. The exceptions being our chamber maid, one guy on reception and the porter. We had a suite and had to constantly moan to get the mini bar re-stocked daily. The air conditioning was poor. Our in room safe failed because the LED battery was low. The food was average and the guests were the most anti social group of geriatrics I've ever met.

The hotel is out of touch with the expectations of what a guest in a 5* hotel expects.. All in all a major disappointment

We have just returned this week from our fifth visit to the beautiful island of Madeira which is like a second home to us now, it was also the third time we have stayed at the Maderia Palacio Hotel.
Prior to our return there, I had read some reports on this site regarding the standards and levels of service at the Madeira Palacio which suggested they were not what they should have been for a 5 star Hotel and the writers indicated they would not return, at the time I read these comments I coudn't believe them in view of my own personal experiences.
However I must now agree that the standards have dropped to prehaps the level of a 4 star Hotel. BUT as ever there is a reason for this, and this is the main reason for sharing this information with possible returning guests and prospective new guests,
We attended a reception for repeat guest and an address by the General Manager regarding the future of the Hotel.
The Hotel has been sold to a Construction Company who plan major refurbishments and alterations, including a second outdoor swimming pool which will result in a large part of the beautiful gardens being removed, the hotel is to CLOSE in November this year for 18 months, reopening in May 2008.
As a result of this change of ownership the staffing levels have been cut by about 40%, some staff are now agency workers and some of the little luxury items/services you would associate with a 5 star Hotel have been dropped.
For us and every other guest I spoke to, two of the main reasons why we return to the Madeira Palacio is the great friendleness and very high professionalism and helpfulness of the staff antd the quietness of the loverly gardens.
The management informed us that they hope to retain many of the current staff, but in the light of the 18 month closure many of the staff are concerned about their future at the Hotel.
We can only hope the new owners are aware of how important these issues are to returning guests and that we can all return to a 'Palacio' that has changed for the better in a decorative sense only.
We hope we can return in 2008 to see the friendly faces of those we have got to know over the years.

Nice setting on the edge of town with superb public rooms. Guest rooms spacious and well equipped but would recommend paying the extra for a sea view. Good pool and pleasant gardens. Ample buffet breakfast. Restaurants for evening meals very good but like many hotels a little lacking in atmosphere and not inexpensive. Suggest using the so-called snack bar opposite (a restaurant really) or the excellent sea food place about 10 minutes away (turn right, then right). Hotel staff most helpful and polite.

I stayed at this hotel over easter 2006. It is not the 5star hotel it claims to be,the bedrooms especially are in very poor condition. We learned from staff that the hotel is due to close for 18months for renovations and it certainly needs these. There are plenty of excellent hotels on Madeira unfortuneately we believed the holiday companies brochure which described this as a renovated hotel.Please do not make the same mistake.