This three-building apartment-style hotel complex is a family-owned business run by Don Jose and his daughter Luisa. Rooms are individually decorated and have a comforting guest house vibe. The fact that the complex is located in an old neighborhood outside of the normal tourist area only enhances this feeling. Likewise, the friendly and familiar attitude taken by Jose and his family toward the guests make staying here ideal for for travelers looking for a bit of local flavor over the typical hotel experience. Though features are few, the property offers lots of character, pleasant outdoor terraces, and beautiful views over the neighborhood's cobblestone streets. 

Apartamentos Sao Paulo e Alegria is located in the old part of Fuchal, where there are charming streets, a handful of nearby bars and restaurants, and easy parking. Overall, this area is central, old, and quiet, since it lacks heavy street traffic. The hotel is just a few minutes on foot from the La Vie shopping mall and a bus station for transportation to the eastern part of the island. The Marina Funchal is a 13-minute walk away, while Madeira Airport is 22 minutes away by car.

The hotel's 31 guest rooms are spread across three separate but equally charming early 20th-century buildings. They have gorgeous parquet wood floors, Madeira-themed decor in bright colors or pastels, and a mix of antique and contemporary furniture. Rooms range from Studios to two-bedroom apartments, each with their own kitchenette with a two-burner electric range, microwave, mini-fridge, and cooking utensils. Dual-level, two-bedroom duplexes can sleep up to eight people, making them ideal for families or large groups; they feature a studio-style living area on one floor and an additional bedroom. All rooms have either two double or twin beds, flat-screen plasma TVs with international channels, kettles, and personal safes, but no air-conditioning. Some rooms have balconies with lovely views over the city. Bathrooms vary quite a bit in size, and are equipped with either shower/tub combos or small stall showers. Hairdryers, soap, and shampoo come standard. Note that there's no elevator. 

Apartamentos Sao Paulo e Alegria is spread over three buildings, but don't expect a sprawling complex with lots of features. Nonetheless, the public spaces available are well-maintained and filled with character. A basic, cold breakfast buffet (fee) is served in a rustic dining room outfitted with terra-cotta tiles and wooden dining sets. There's also a casual cafe-style restaurant and bar with enough seating for a handful of guests. 

The verdant tropical garden is filled with a few loungers, a covered hut with hammocks, and a barbecue area. There are also two roof terraces with fake grass, iron and wicker seating, and beautiful views over the neighborhood. A reading room with books in several languages and a meeting room facility are additionally on-site. Babysitting services and in-room massages can be arranged for fees. It's worth mentioning that reception hours are limited, so guests should be sure to plan arrival and departure accordingly. Private parking is available for a fee, while Wi-Fi is free throughout.