We (4 adults) have just come back from a week at Pestana Gardens ( or Atlantic Gardens as it was once know). we had a lovely time in this quiet part of town. If you what to be in the hustle and bustle of Funcal this is not the place for you. But if you want a quiet place to stay within striking distance of the main town then fine. There is a courtesy bus going to and from the town ( offically only for the hotel guests next door but we used it ) or service buses a nd taxis fairly resonable. the old oil refinery has been knocked down and is due to be redeveloped as a Park, 2 hotels and a car park in the near future.
To get up to the main road the is a steep climb up steps and slopes or you can rent a key for 1 euro a day for a lift that takes you most of the way.
The stoney beach is right out side the gardens, but is NOT good for swimming (yellow flag ) unless you are a VERY good swimmer, definately a no go for children.
2 good bars and restuarants within 100m or the hotel next door. the supermarket is a bit of a trek away, but on the main road is a fruit and veg shop and somewhere to get bread and cakes.
The reception staff are very helpful and knowlegeable
I would go again if only to wake up to the sound of the waves so close.

Hotel was in a good location - as close to the sea as it gets!
Stayed in penthouse room, and had 3 king size rooms, 2 baths, and our own sun roof as well as large balcony - the space was phenominal.. Hotel was clean and quiet, just what we needed to enjoy the fantastic weather. Used shuttle bus into Funchal and got taxi back - only 8 euros- but most nights walked to pizza place through tunnel, about 15 minute walk.
Room was cleaned daily with bed linen change mid-week. Staff were on the whole freindly. Only complaint was one receptionist was ignorant and rude on a couple of occasions.
Would definitely consider going back.

Before you book this hotel be warned of the following facts:
There is no beach, just a moon-scape of boulders and, when we were there, a JCB boulder bashing.
The "village setting" includes a disused oil refinery. Nice!
There is no restaurant which must be a first for a 4 star hotel.
The room was a pokey airless hole. My heavily pregnant wife had to sleep on a camp bed.
To say there was nothing to do would be an understatement. By day 3 we were spending our time watching TV cartoons in Portugese.
When we complained we were told basically 'tough luck'. We endured this dump for 7 days and could not wait to get home.
If you still go ahead and book this hotel be aware we were only offered £120 pound compensation for our troubles (5% of our costs!) My advise: Don't go near it.

Just returned from a week over Christmas and thought the hotel was perfect if you have children. Great location on a pebbly beach and you can walk to Funchal mainly on a car free promenade (through a tunnel which is wet underfoot) most of the way which takes about 11/2 hours approx passing lots of cafes/restaurants and lidos. The only noise you hear is the ocean and the views from the apartment were spectacular. The hotel staff went out of their way to be helpful and were great with our young children (3 & 5). Was a real break as breakfast was at the Pestana Bay next door which had a huge choice and there are two great restaurants outside the hotel one we ate in a lot was called By the Sea and has fab fresh sea food and always busy full of the locals and the other on the beach called the Yacht Club both cheaper than eating at the Pestana Bay. Weather was great, didn't expect to be sunbathing on Christmas Day and swimming in the pool but we were!!!! Free Shuttle bus into Funchal is also a bonus

Funchal is a lovely place, very clean and the Christmas street decorations were the best I've ever seen
We did the trip up to the Gardens by cable car which the children loved and also did a short levada walk by ourselves by catching the 47 bus to the Hortensia tea garden and walking 11/2 hours and catching the 29 bus back.(buses run every hour approx) The buses leave from the old town in Funchal right by the shuttle bus stop.(this is a much cheaper way of doing a levada walk as the tours charge 35 euros each) There was also a fair on by the harbour which was a bonus for the children!

The holiday exceeded my expectations and would thoroughly recommend the hotel with children as the space in the apartment is ideal with the facility to cook (hobs only) if required. The hotel is a good 3* in my opinion and is not too formal so great choice if you have two boisterous boys like I do!