Atlantic Holidays will also give you flight information as well as half board and full board. Pestana is the biggest Hotel Company in Portugal and the 10th in the world. All its employees are specially selected and are multi-lingual. Most hotels in Madeira are in the Hotel Zone which is to the west of Funchal. Between 1 and 5 kilometres from the center.
Taxi would cost from 5 to 10 euros depending aof time of day and distance.
This will give you an idea of the hotels locations.
http://www.madeira-web.com/PagesUK/funmap.html
Most hotels in the Zone have coaches which take you into Funchal and then back again at set times.
PS:_ when booking a hotel insist on a "sea view" as many hotels have rooms facing back onto the mountains which overlook Funchal ! 
If booking with Pestana email the hotel and ask for a "sea view" I have used the Pestana Atlantic Bay many times It is supposed to be 4 star but worth much more. 
