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Madeira hotel recommendations

Does anyone have recommendations on where to stay in Madeira? I'm torn between locations with great ocean views and wanting to be within a 15 minute walk to Funchal city center. Those who have stayed further out - is it possible to get by without renting a car?

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We were there last month, stayed at Next Savoy Signature which would meet both your criteria. Loved the location. Funchal seems to have a good bus system though we never tried it. Did a 2-day tour with Feeling Madiera to see the island.