We stayed at The Residence hotel, part of the Portobay complex, next to Eden Mar. We were upgraded at check in without being told and it was a nice surprise. The apartment we received was very big, think of a bigger apartment with a "small" hotel room included which had its own bathroom.
Everything was very clean and, even though we did not use much of, the kitchenette was equipped with everything necessary for cooking.
Beds were comfortable and in good shape even though some of the furniture pieces were showing their age.
There were 5 swimming pools available, some indoor (one which allowed for swimming outdoors as well), one of them heated and two were suitable for little children. A gym, indoor and outdoor play areas for kids, as well as a hobby room were all available for free access.
A SPA is available, we only went there for a massage that was nice.
People are extremely helpful and nice, we really felt really good.
On top of everything the included breakfast buffet was very generous, even with sparkling wine available, and one could eat indoors or outdoors on the terrace.
We would come back and choose the same hotel without hesitation. Funchal downtown is within walking distance, although maybe this is not an option for everyone a quick taxi ride is also possible. Nevertheless, location is also very good.