We visited the Grand on the basis of the good reports.
However whilst we found all the staff were very friendly, helpful and efficient the hotel is definitely not 5 Star.
The room was OK, but nothing special. There was a poor choice of beverages, the shower had a curtain, not a screen and the water in the sink kept draining away, due to poor fitting plug. On the plus side I must say the beds were very comfortable.
They even had the audacity to charge 5 euros for use of a cheap iron and ironing board.
Breakfast was OK but nothing special, a bit inconsistent.
The hotel did provide very efficient free travel to the main town.
It is a lovely walk into town (about 40 mins) and taxis cost approx 8 euros if you need to use them.
The island is beautiful and will be going back, but will not stay in a Pestana again.
There are a good choice of hotels nearer or in the town.
Sorry to be so negative Mr Pestana, but you need to raise your game.

Having stayed here last year and enjoyed it immensely, we decided to go back. However for this stay we decided to upgrade to a suite. Although the upgrade is not cheap, it is well worth it as you get a vast amount of space, a much larger bathroom with a separate shower cubicle instead of just a shower attatchment over the bath, and two balconies. An additional surprise was a knock at the door shortly after we arrived, only to find a waiter with a complete honey cake and a bottle of Madeira wine - compliments of the hotel.
The only disappointment was that if you wanted to use one of the first two courtesy buses, into Funchal, in the morning they usually turned up with only 2 out of the 52 seats available. This was because the bus picked up first at the Pestana Bay Hotel.
The hotel restaurants were a bit expensive for evening meals, but there are plenty of good choices within easy walking distance. The choices at breakfast were very good, the only disappointment being that many of the hot buffet items were often only luke warm.

We stayed at the Grand after a week at the Carlton with timeshare. The studio apartment was very nice and clean and modern. The view we had could have been better on the 1st floor could not see past the plants on balcony. This spoiled it a bit. The pool area is lovely and very modern and clean. The prices are a bit expensive but it is a five star resort so I guess thats what you would expect. The pool bar closes at 6pm and after that you must go indoors to get a drink, it is not the kind of bar you would sit in before a shower and change. Also they do a happy hour where you get 20% off , I think if they did the traditional 2 for 1 or half price more people would use it. The drinks are very expensive compared to outside the hotel. The location is not too bad near Forum Madeira Shopping centre which is very nice with good choice of shops and eating out. Quite trendy not for older people perhaps. We liked it. The staff were quite impersonal apart form Mike who did the welcome meeting he was full of very useful information and seemed very approachable we found other staff members very arrogant and even rude.

As per title. The water was very cold, and few people used the pool. The staff were very friendly and professional, and the rooms were of larger than average size. Very good buffet for breakfast.