Reid's Palace, a Belmond Hotel, is a legendary retreat in Madeira. Its story began with a Scotsman, William Reid, who built up a thriving wine export business on the island. He decided to construct a palatial hotel on the promontory overlooking Funchal. It opened in 1891 and went on to attract illustrious guests from Sissi, the Empress of Austria, to Winston Churchill, the British prime minister. Today, Reid's star shines ever brighter – literally. Now a gourmet destination, the hotel was awarded the first ever Michelin star earned by a Madeiran chef at William Restaurant. It's one of several sensational dining options. Others include a cosy, cliffside Italian restaurant, an elegant terrace serving afternoon tea and a stylish cocktail bar. Guests stay in individually designed, light-filled rooms with captivating vistas. A suite named after Churchill boasts floor-to-ceiling windows, Portuguese tiles and handpainted wallpapers. The hotel's extraordinary location overlooking the wild Atlantic Ocean means breathtaking views and cool sea breezes are a feature of every stay. Outdoor pleasures are a big part of the hotel's allure, from tours of the gardens bursting with orchids, hibiscus and hanging jade vines, to the tidal pool down by the waves and enchanting alfresco parties. Even the acclaimed spa boasts sea views from its treatment room balconies. For the actively inclined there are two further pools, two tennis courts and a state-of-the-art fitness centre. Exhilarating adventures around the island range from levada hikes and mountain jeep tours to dolphin- and whale-spotting boat trips.