I stayed in this hotel about 30 years ago, it's difficult to describe the sort of person who should stay at this place, if you don't mind climbing a steep hill, you don't like big hotels and want to be a bit different this is for you, it's not expensive , the staff are friendly and helpfull, some of the rooms are enormous, a few floorboards creaked, the bathroom lock didn't exist but the shower was brilliant.

We stayed at Monte Carlo for 3 nights over New Year 2012. We have been travelling around Madeira for nearly 2 weeks and stayed in 4 different hotels (2 in Funchal & 2 others in Serra de Agua and Jardin do Mar). We chose all 4 hotels carefully, based on several web-site reviews (including tripadvisor) - all have been great with very kind people except for this one.
Sad to say our experience was not as posiitive as quite a few others for this hotel and we will not be returning.

We give 5 stars for the wonderful view and we love the ambience of the hotel. It is a beautiful & classical old building, located high up the slopes of Funchal city. We like hiking so walking up & down to the city centre was not a problem for us.
The young male staff at the service counter when available, was very courteous & very helpful but unfortunately we could not say the same for the management.

We are not rude people but yet we felt that we were treated slightly different from several other guests for no reason. Not once did the manager smile or greet us (or me in particular) during breakfast or when he bump into us. When I paid our bill on the final morning, he avoided all eye contact and sounded like he had to force himself to say thank you. I am puzzled by his behaviour if he was uncomfortable with my nationality or race. I have seen him in nicer terms, greeting, shaking hands and wishing other guests well on their way.

On the first day he seemed annoyed at us for not deciding immediately to join the hotel's organised New Year Gala dinner (at EUR60 per-head) 'inclusive of all drinks'.
We eventually decided to participate the following day which was our biggest (& costliest) mistake as the food quality was poor for that price. We had to serve ourselves canteen style. The service was bad, the waiter and waitress (there were only 2 running around, which was a bit under-staffed) did not even once refill our water & wine glass until we got their attention. At least they were apologetic......

We had room 16, the room was nice with high ceilings and a great view over the city.
The downside:
- the bed was incredibly creaky at the slightest turn.
- The shower needs a lot of updating as the enamel bits are falling out. There is a wooden platform on the shower base but we removed it for fear of fungal infection.
- the maid did not check or refill the shower gel throughout our stay (we brought our own toiletries fortunately)
- the table lamp was dangerous with live wires exposed at the plug end

We will not be returning. we don't mind paying for the incredible view, the creaky beds and rusty shower (we give 3-4 stars for this) but not for the differential treatment from the manager.

Our family spent New Year's Eve at this hotel. It has the most amazing view of their famous fireworks display. We couldn't have asked for a better view! The hotel staff was most accomodating and the hotel was like stepping back in time to the grand age of elegance.

just spent a very enjoyable 2 weeks, fabulous views, old fashioned style, in walking distance to the old and new parts of town, a bit of a climb back, but once there the views were amazing, had a good room (30) with clean beds and towels, lovely staff, would go again