Belmond Reid's Palace
Product brand
UnclaimedA historic luxury hotel in Funchal, Madeira, celebrated for its Atlantic setting, subtropical gardens, Edwardian character and long-standing afternoon-tea tradition.
Last updated August 24, 2026
Overview
Belmond Reid's Palace is a historic luxury hotel on the western side of Funchal Bay in Madeira, Portugal. Positioned above the Atlantic Ocean, the property is known for its cliffside setting, sloping gardens and expansive subtropical grounds covering more than 40,000 square metres. Its identity combines a grand European resort tradition with Madeira's mild climate, ocean views and botanical landscape. The hotel's origins are connected with William Reid, a Scottish-born entrepreneur who arrived in Madeira in 1836. Reid initially worked with quintas—large country estates that were rented to affluent visitors and people seeking the island's climate for health reasons—before moving into hotel development. He died before the completion of the project that would carry his name, but his sons William, known as Willy, and Alfred continued the work. Designed by architects George Somers Clarke and John Thomas Micklethwaite, the hotel opened in November 1891 as the New Hotel. It was subsequently known as the New Palace Hotel and later became widely identified as Reid's Palace or simply Reid's. From its opening, the property presented itself as a high-end retreat that paired Edwardian elegance with contemporary comforts of the period. Its location, formal interiors, gardens and service-oriented hospitality helped establish it as one of Madeira's best-known luxury hotels. The hotel also became associated with the cultural and political elite of its era. Documented guests have included Winston Churchill, Anthony Eden, David Lloyd George, former Austrian emperor Charles I, Fulgencio Batista, Józef Piłsudski, Roger Moore, Gregory Peck, Rainer Maria Rilke, Albert Schweitzer and George Bernard Shaw. These associations contributed to the hotel's reputation as a destination for statesmen, aristocrats, artists and other prominent travelers. Reid's Palace also has a connection with the history of photography. Sarah Angelina Acland, an early pioneer of colour photography, stayed at the hotel during the early twentieth century and photographed the property and its surroundings. The hotel maintained a darkroom for guests, reflecting the role of Madeira's major resorts as places where affluent travelers could pursue leisure, science and artistic interests alongside conventional tourism. Film footage from 1936 preserved by London's Cinema Museum further documents the hotel and its visitors. A signature element of the guest experience is afternoon tea served on the terrace. This ritual reinforces the property's British and Edwardian heritage while making use of the Atlantic outlook and garden environment. Other core activities include luxury accommodation, fine dining, leisure hospitality and wellness services, although the hotel's central proposition remains the overall historic resort experience rather than a single standalone product. The property became part of the portfolio of Orient-Express Hotels Ltd. The owner changed its corporate name to Belmond Ltd. on 10 March 2014, and the hotel was correspondingly renamed Belmond Reid's Palace. LVMH later acquired Belmond Ltd. in a transaction that closed in April 2019, bringing the hotel into the LVMH-owned Belmond luxury travel group. Today, Belmond Reid's Palace remains an operating luxury hotel in Madeira, positioned around heritage, landscape, personalized service and continuity with its long-established resort traditions.
History
The history of Belmond Reid's Palace is rooted in Madeira's nineteenth-century emergence as a destination for affluent European visitors and health travelers. William Reid, the son of a Scottish crofter, arrived on the island in 1836. He first became involved in renting quintas to wealthy invalids and later moved toward hotel development. His ambition was to create a major luxury hotel overlooking Funchal Bay, but he died before the project was finished. Reid's sons, William—often called Willy—and Alfred carried the development forward. The building was designed by George Somers Clarke and John Thomas Micklethwaite, and the hotel opened in November 1891. It was initially called the New Hotel, later the New Palace Hotel, and eventually became known as Reid's Palace or Reid's. From the start, the property was conceived as a refined resort with formal architecture, landscaped grounds and the modern comforts expected by elite travelers of the period. The hotel's setting became a defining part of its history. It occupies an imposing position west of Funchal Bay, above the Atlantic, with sloping gardens and a complex incorporating more than 40,000 square metres of subtropical botanical garden. This combination of ocean panorama and cultivated landscape helped distinguish the hotel from urban lodging and made it a destination in its own right. During the early twentieth century, Reid's Palace attracted political figures, aristocrats, writers, artists, entertainers and explorers. Guests documented in historical accounts include Winston Churchill, Anthony Eden, David Lloyd George, former Austrian emperor Charles I, Fulgencio Batista, Józef Piłsudski, Roger Moore, Gregory Peck, Rainer Maria Rilke, Albert Schweitzer and George Bernard Shaw. The hotel was also visited by Sarah Angelina Acland, a pioneer of colour photography, who created images in and around the property. A darkroom was available for guests, illustrating the hotel's role as a base for cultured and technologically engaged travelers. Film held by London's Cinema Museum records the hotel and its guests in 1936. Hospitality traditions developed alongside the hotel's celebrity reputation. Afternoon tea on the terrace became particularly associated with Reid's Palace and remains an important expression of its inherited British and Edwardian character. The property’s broader offer has centered on accommodation, dining, gardens, service and resort leisure rather than on a narrow accommodation-only model. In the modern corporate era, the hotel was acquired by Orient-Express Hotels Ltd. When that company changed its name to Belmond Ltd. on 10 March 2014, the property became Belmond Reid's Palace. LVMH acquired Belmond Ltd. in a transaction completed in April 2019. Under Belmond and LVMH ownership, the hotel continues to operate as a luxury heritage resort in Madeira, using its historic architecture, Atlantic location, gardens and long-established service rituals as the foundations of its market position.
- 2019
LVMH acquires Belmond
[1]LVMH completed its acquisition of Belmond Ltd., adding the hotel to its luxury travel portfolio.
- 2014
Property adopts the Belmond name
[1]After Orient-Express Hotels Ltd. changed its name to Belmond Ltd., the property became Belmond Reid's Palace.
- 1936
Hotel documented on film
[1]Film footage preserved by London's Cinema Museum recorded the hotel and its guests.
- 1891
Hotel opens in Funchal
[1]William Reid's sons, Willy and Alfred, completed the project designed by George Somers Clarke and John Thomas Micklethwaite. The New Hotel opened in November.
- 1836
William Reid arrives in Madeira
[1]William Reid arrived in Madeira and began working with quintas rented to wealthy visitors, later moving into hotel development.
Products and positioning
Luxury heritage resort combining Edwardian elegance, Atlantic views, subtropical gardens and traditional European hospitality.
Accommodation
Luxury rooms and suites
The hotel's core offering is historic luxury accommodation in a cliffside setting above Funchal Bay. Rooms and suites form part of the broader Reid's Palace experience, which emphasizes heritage architecture, ocean outlooks, landscaped grounds and attentive resort service.
Food and beverage
Terrace afternoon tea
Afternoon tea served on the terrace is one of Reid's Palace's most recognizable traditions. It expresses the hotel's British and Edwardian heritage while taking advantage of the Atlantic-facing setting and subtropical gardens.
Food and beverage
Fine dining and hotel hospitality
Dining and beverage services complement the accommodation business and support the hotel's positioning as a complete luxury resort. The offering is integrated with the property's historic interiors, gardens, terrace spaces and destination-oriented guest experience.
Wellness
Spa and wellness
Spa and wellness services extend the resort proposition beyond lodging, reflecting Madeira's long history as a restorative destination. The emphasis is on relaxation and personalized leisure within the hotel's Atlantic and garden setting.
Resort amenity
Subtropical botanical gardens
The hotel complex includes more than 40,000 square metres of sloping subtropical botanical gardens. These grounds are a central part of the property experience, providing landscaped spaces, visual identity and a transition between the historic buildings and the Atlantic landscape.
Brand decisions
2019
LVMH acquisition of BelmondM&ABackground
Belmond Ltd. owned a portfolio of luxury hotels, trains and travel experiences, including Reid's Palace.
Action taken
LVMH acquired Belmond Ltd.; the transaction closed in April 2019.
Aftermath
Belmond Reid's Palace became part of LVMH's luxury travel and hospitality holdings while continuing to operate under the Belmond brand.
Reported transaction value. $3.2 billion final transaction value (Transaction completed April 2019)
2014
Adoption of the Belmond identityStrategyBackground
The hotel had been associated with Orient-Express Hotels Ltd., which changed its corporate name to Belmond Ltd. in March 2014.
Action taken
The property changed its name from Reid's Palace to Belmond Reid's Palace, aligning the historic hotel with the broader Belmond luxury travel portfolio.
Aftermath
The hotel retained the Reid's Palace heritage name while gaining the Belmond group identity.
Recent events
- 2019
LVMH completes acquisition of Belmond[1]
M&A
LVMH completed its acquisition of Belmond Ltd. in April 2019, bringing Belmond Reid's Palace into the luxury travel group. The reported final transaction value was approximately $3.2 billion.
- 2014
Reid's Palace becomes Belmond Reid's Palace after owner rebrand[1]
Other
Orient-Express Hotels Ltd. changed its corporate name to Belmond Ltd. on 10 March 2014. The Madeira property subsequently adopted the Belmond Reid's Palace name.
Sources1 sources
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