Madeira is an underrated gem in Portugal. If you are visiting for the first time and wondering where to stay in Madeira, this list of the absolute best hotels in Funchal will help you plan an unforgettable trip.
Visiting Madeira was one of our favorite vacations since we moved to Portugal. It’s a tropical paradise filled with so many amazing activities.
Our biggest regret was that we wished we booked our trip for more than 5 nights because there are so many amazing hikes in Madeira.
Funchal is perfectly located in the middle of it all with great restaurants, lots of sightseeing and it’s close to the airport, making it a great base. This list of dreamy places to stay in Funchal will suit every budget and taste.
This post contains affiliate links. If you book or buy something through one of these links, we may earn a commission at no extra cost to you. You can read our full disclosure here.
Planning your trip to Madeira last minute? Here are the tours and hotels we recommend.
- TOP EXPERIENCES & TOURS IN MADEIRA
- BEST HOTELS IN FUNCHAL
- PRACTICAL INFORMATION FOR MADEIRA PORTUGAL
Best Time to Visit Madeira
Best time to visit Madeira is April through October for the best weather. This beautiful Portuguese archipelago has consistently better winter weather than mainland Europe and even boasts year-round sunny skies.
Tourists usually flock during summer months, so to avoid busy vacationing times along with higher hotel rates tourists should consider visiting earlier in the year between April and June.
The other busy times of year are during the wide variety of festivals from New Year’s Eve, Carnival, Madeira Flower Festival, and the ever popular Madeira Wine festival! Book hotels early during these times as they sell out.
The rainy season takes place during October until March with January being the rainiest and coolest month out of all. However, we visited in October and just planned our activities around the parts of the island that had sun that day.
All these factors make this unique island an ideal great year round vacation destination for visitors willing to explore local culture and its quaint attractions! Plus it’s so easy to take the 1.5 hour flight from Lisbon to get there.
Where to Stay in Madeira: Why Funchal is the Best Choice
There are so many things to do on this amazing island, your first question is bound to be “where’s the best place to stay in Madeira?” In our opinion, the best area to stay in Madeira is Funchal.
Funchal is one of the most beautiful cities in Portugal with lots of old world charm and there is always something exciting going on. This very walkable city has tons of sightseeing, the best restaurants on the island and plenty of shopping.
If your goal is to try a little of everything Madeira has to offer – hiking, sightseeing, wine tasting, and beaches then Funchal is definitely the best place to stay in Madeira because it’s the perfect hub.
Almost all day trips, water activities and tours to anywhere else on the island, will depart from Funchal.
Even if you plan is to spend most of your time on Madeira hiking, Funchal is still the best place to use as a base. After long hikes, being able to step into a restaurant immediately or sightsee without having to drive anywhere is very appealing.
The most stylish and best hotels in Madeira are located in Funchal. If you just want to stay in the nicest hotel during your stay in Madeira, you will find everything from 5 star luxury resorts to unique boutique hotels in Funchal.
Read on for our top 12 hotel picks for the best places to stay in Madeira’s city center.
12 Best Hotels in Funchal Madeira
The best part about staying in Funchal is the amazing range of hotel options. We’ve put together a list of some of the top hotels in Funchal so you can pick your ideal Madeira accommodation.
Three House Hotel (Best Funchal Apart Hotel With Hip Rooftop Bar and Pool)
One of the most stylish hotels in Funchal, the Three House Hotel (9.7) is in a beautiful area with spectacular views and an inviting energy that feels like home.
The rooftop terrace is one of the best places to unwind after a day in Madeira! It features a refined saltwater pool, a great cocktail bar, and a gazebo. But, seriously, even if you don’t stay here, we highly recommend coming here for drinks and island views.
Studio rooms and apartments offer a seating area, private bathroom with a bidet, homey designs, and city views.
There is also breakfast, a modern international restaurant serving health and comfort foods, ping-pong, and a fitness center.
What guests like most: very comfortable, great for young adults and couples, rooftop • Considerations: may get traffic noise
Hotel Cajú (Best Boutique Hotel in Funchal With Amazing On-Site Restaurant)
Featuring mountain views, the relaxed Hotel Cajú (9.3) is at the heart of many of Funchal’s top attractions. And perhaps home to some of its best food!
Warm-toned rooms offer a rustic vibe with stone-accented walls. Upgraded rooms add balconies and city or mountain views, while suites feature cozy living areas.
Enjoy breakfast, brunch, or lunch at the hotel’s restaurant. They focus on organic, local ingredients as they whip up some of the best food in Funchal. Other lovely amenities include a spa and gym.
What guests like most: location, brunch, charming design • Considerations: restaurant isn’t open for dinner, but lots of options nearby
Les Suites at The Cliff Bay (Located in Best Area for Nightlife)
If you’re looking for a 5-star luxury hotel in Funchal, look no further than Les Suites at The Cliff Bay (9.5). On a leafy estate facing the house facing the ocean, the hotel features two century-old dwellings and a new wing set in lush gardens with amazing views.
Serving as a social area for guests, a charming garden and infinity pool area connects the buildings. In addition, this upscale hotel provides guests access to a hot tub, a sauna, and three restaurants.
If that’s not enough, there is also a gym, indoor pool, and pilates room at the spa – everything you want from luxury accommodation in Funchal!
All suites have picturesque balconies with living areas and wet bars. Upgraded suites add private gardens or duplex layouts. If you’re traveling with the family, book the 2-bedroom suite and get a kitchenette and two balconies.
What guests like most: amazing views, incredible food • Considerations: slightly outside of the city
Sé Boutique Hotel (One of the Most Unique Hotels in Funchal)
Nestled along a tiled street, the stylish Sé Boutique Hotel (9) is set in a 15th-century building in a vibrant area of central Funchal, just a two minute walk from the Cathedral.
Enjoy relaxed rooms with a contemporary vibe, offering all your usual hotel room amenities and a private bathroom with a bidet. While the rooms are thoughtfully – yet minimally – decorated, the rest of this Funchal hotel stands out.
Unwind at the funky rooftop bar with panoramic views, chic lobby cafe, green-hued Italian restaurant, or cozy tapas bar. Let’s not forget the spa and posh indoor pool, too. The whole place makes for a unique experience!
What guests like most: rooftop bar, decor, great staff • Considerations: rooms don’t stand out, no balconies
Hotel Baia Azul (Best Madeira Resort for Ocean Lovers)
Just a short walk from the Atlantic Ocean and numerous beaches, Hotel Baía Azul (9.1) is one of the best hotels in Funchal for those who want to be at the oceanfront.
The airy rooms boast sea-inspired decor, desks, and furnished balconies – some with ocean views. This hotel is for you if you want a beachy vacation to Madeira.
Each of the three on-site restaurants has a different ambiance serving various cuisine. There’s also a bar restaurant by the outdoor pool for light bites and cocktails.
This grand hotel doesn’t skip out on a fantastic spa with a gym, hot tub, sauna, and steam bath. There’s also a squash court and game room to let loose further.
What guests like most: resort feel, relaxing vibe, ocean views • Considerations: large hotel with 215 rooms
ARTS IN Hotel Conde Carvalhal (Best Garden Hotel in Funchal)
The ARTS IN Hotel Conde Carvalhal (9.1) is a restored Madeiran mansion and is beautifully located near Funchal’s Old Town with scenic views of the Atlantic Ocean, cityscape, and mountains from its botanical gardens and terraces.
Studios and suites enjoy modern furnishing, wood flooring, and bright bathrooms with bathrobes included. Then, some rooms feature kitchenettes and balconies.
ARTS IN Hotel Conde Carvalhal is all about careful design and decor that gives the feel of urban city life with the luxury of privacy. All this is done while involving guests and local art in the process.
An excellent breakfast is available daily, along with massages, bike and scooter rentals, and bar drinks.
What guests like most: garden, outdoor seating, proximity to center • Considerations: no pool
The Vine Hotel (Best Boutique Hotel in Funchal for Couples & Wine Lovers)
Recently awarded as Europe’s Leading Design Hotel, the 5 star Vine Hotel (8.8) in Funchal offers luxury the Madeira way. It’s easily one of the best hotels in Madeira.
There’s a fusion restaurant with sweeping views, a Wine Therapy Spa, a therapeutic hot tub, a nicely equipped fitness center, and a stylish rooftop infinity pool.
The Design Suite features a designer stone bathtub in the middle of the room with a vine theme honoring the vineyards of Madeira, and a French balcony.
Other rooms and suites enjoy ensuite bathrooms, and some have balconies, sitting areas, and free-standing tubs.
What guests like most: wonderful staff, stylish design, location • Considerations: lighting system in rooms might be confusing
Savoy Palace (Best Funchal Resort With Tons of Amenities)
Drenched in luxury, Savoy Palace (9.3) is exceptional. It amplifies upscale amenities like infinity pools, jacuzzis, and wellness spas.
The palace hotel’s polished rooms offer lovely city or ocean views in a bright and ritzy setting with marble finishes and gold-toned headrests.
All rooms have sitting areas and balconies, while luxe suites add living rooms, terraces, and private plunge pools.
With four refined restaurants, four more bars or lounges, and two outdoor pools, there is much to explore and appreciate at this Funchal resort. It makes for an ideal honeymoon or anniversary destination!
What guests like most: exceptional comfort, breakfast, rooftop bar • Considerations: large resort
NEXT – by Savoy Signature (Best Funchal Rooftop Pool Overlooking the Ocean)
Modern style, resort amenities, and ocean views make NEXT – by Savoy Signature (8.8) one of the best hotels in Funchal.
Guests can choose between rooms or suites that offer either ocean or city views and modern amenities. All units have a stylish balcony.
Take advantage of outdoor swimming pools, a complimentary fitness center, a sauna, and a property garden. Otherwise, unwind on the terrace, stylish restaurant, or on-site bar and lounge area.
What guests like most: exceptional stay, rooftop pool • Considerations: sometimes slow service at pool bar
Reid’s Palace (Best Luxury Resort in Madeira for Families)
Set among subtropical clifftop gardens, Reid’s Palace (9.4) has been welcoming guests for over a century. You’ll get a taste of Portuguese old-money luxury when you stay at this Madeira hotel.
This 5-star resort features an oceanfront spa, three swimming pools, and direct access to the ocean. On top of that, each room is elegantly furnished with a balcony and marble bathrooms. There’s also a minibar and in-room movies available.
When you’re not enjoying your stylish room or suite, there’s a ritzy dining hall and upscale cocktail bar. You can also enjoy afternoon tea on the terrace or a match at the tennis court.
If you’re bringing the kids, perks include a play area, kids’ pool, and game room.
What guests like most: family friendly, historic property, attention to detail • Considerations: might hear cruise ships
Castanheiro Boutique Hotel (Great Location in Funchal)
Occupying a charming historic building, Castanheiro Boutique Hotel (9.2) is full of beautiful cityscapes and ocean views in the heart of Funchal. It has a tropical vibe, reminding you you’re on a beautiful island.
Polished rooms with chic furnishings feature minibars, flat-screen TVs, and modern coffee machines. Some additional rooms have balconies and/or kitchenettes. If you book an upgraded room or suite, take advantage of sitting areas or separate living rooms.
Visit the outdoor pool or jacuzzi to unwind among the scenery. Otherwise, soak up time at the spa with a hydrotherapy pool, sauna, Turkish bath, and massage rooms.
There’s also a Mediterranean restaurant, cafe/bar, and a rooftop terrace bar by the pool.
What guests like most: central area, incredible staff, spa • Considerations: might have city noise
Hotel Alto Lido (Best Value Hotel in Madeira With Ocean View Rooms)
Situated on a bright hillside building by the Atlantic, the Hotel Alto Lido (8.9) is full of contemporary chic style.
Its modern interior design is consistent throughout the hotel. All rooms and suites have white-washed balconies and private bathrooms, while hotel studios enjoy fully-equipped kitchenettes.
Breakfast is complimentary, and there are three restaurants, including Linha de Água, which offers light meals and fresh salads by the outdoor pool.
Guests also really enjoy the live music and cocktails at the 360 bar.
What guests like most: modern vibe, breakfast buffet, close to beach • Considerations: might hear outside noise
Final Thoughts About Where to Stay in Madeira Portugal
Funchal is an idyllic city that has so much to offer any traveler. The charm, luxurious resorts and boutique hotels, variety of outdoor activities, vibrant nightlife and rich culture are among its many reasons to book a Madeira trip.
When you are looking for the best place to stay in Madeira, Funchal offers something for everyone. Make sure you book your stay early if traveling during high season or one of the festivals as hotel prices rise quickly and sell out during these times.
To truly enjoy all that Madeira has to offer, be sure to book one of the best hotels in Funchal for your trip!
More Portugal Posts:
- 15 Best Portugal Beach Towns
- 15 Best Boutique Hotels in Lisbon
- How to Plan 2 Days in Lisbon
- The 2 Days in Porto Itinerary You’ll Want to Steal
- 27 Epic Adventures to Add to Your Europe Bucket List