So, I read previous reports that mentioned ants and I can confirm that we did experience them everyday in the room somewhere or other. Having a glass of water by the bed attracted ants, anything left on the floor seemed to attract ants and you must be careful to not leave food out in the kitchen area. However, they weren't big ants, about half the size of UK ants, and they weren't in large numbers - we put up with it. Some items of fruit at the breakfast table had ants on one occasion and the ants weren't something we had experienced in our other Madeira hotel.
The room was spacious and clean, although the lighting was a bit dim. A 'get you in' basket of food is provided and there is a well-stocked mini-bar, all at cost.
The view of the harbour was partially obscured from the room, but the patio area had an un-interrupted view of the town and coast.
Staff were extremely helpful and friendly and the breakfast was reasonable for 12 EU each, consisting of some limited hot options (pancakes, omelettes, bacon and beans etc), accompanied by a small basket of fresh rolls and croissants, cheese and ham slices, jams and 2 slices of cakes and fresh fruit and fresh juice.
Both the exterior and interior of the hotel were tired. As over 60's, the walk into Funchal and back was not as bad as seem to suggest (about 10 - 15mins each way). The aircon was very effective and there is also a mid-size TV in the room.
Overall, the slightly tired décor and the ant issue makes this a 3*+ hotel.