we are on a 9-week trip around Europe , and are therefore looking for budget hotels and this one we really liked. It is very conveniently located in the heart of Funchal close to everything you would want here: the promenade, the old town, the shops, a supermarket, the bus stops, the gondola to Monte... you name it. There is however no place to park a car to even unload your luggage, because the street is very narrow. If you travel with a rental car you might want to consider this.
Out of 12 rooms, there are only 2 rooms with a veranda to the back of the house, and we had one of them.
The room was equipped with 2 bunk beds, which surprised us at first, but it turned out to be handy for storage of suitcases. It was basic, clean, quiet and the mattresses were good and firm. The owners are extremely friendly and accommodating. We would recommend this place to all budget-oriented travelers.