This is both a hotel and a restaurant. We haven't stayed the hotel, but it's on our to do list. We have been here several times to hang out and what makes it so special is that it's a super tropical and lush environment with very few people. The reason why you usually don't see many people here is because you have to pay 10€ per person to take the cable car, which is the only way to get there. Yes, it's a bit expensive, but it is fair considering how few people actually use this state of the art cable car. They grow all sorts of vegetables and fruits here, and you must of course have lunch at the restaurant while enjoying the view. It's always nice weather here it seems, so if Funchal is grey, it's probably sunny here.

Our video from there: https://youtu.be/OYS-qIxCGZE?t=445