Where to Stay in Madeira 2024: The Ultimate Hotel Guide

The location of where you stay in Madeira is very important, if not the most important factor to consider, as this dictates how much driving you will do, and whether or not you need to rent a car, so this can have a huge impact on your overall experience.

The other major factor to consider is property type. Do you prefer to stay in a large resort with lots of amenities, a smaller boutique property, an apartment, or a budget hotel?

In this guide, we go into more detail about these factors, with recommendations on some wonderful places to stay in Madeira, for all budgets.

Geography 101: A Brief Overview of Madeira

Madeira is a small archipelago that is located about 500 kilometers west of Africa.

It is made up of several islands: Madeira (the largest island), Porto Santo, the Savage Islands, and the Desertas Islands. Most visitors will spend all of their time on Madeira, but it is possible to day trip or spend several days on Porto Santo.

Funchal is the capital city of Madeira. It is located on the south coast of the island and makes a great place to stay, as it is filled with hotels and restaurants. It also makes a handy location for exploring the remainder of the island, as many tours of Madeira start here. If you are planning a quick visit to Madeira and/or have no plans to rent a car, this the best location to stay.

The interior of Madeira is very mountainous. Most of the roads that cross the interior are narrow, extremely hilly roads with many twists and turns. These can be challenging to drive and made even more difficult with cars parking along the road, as parking is very limited in Madeira.

The coastline of Madeira is punctuated by small towns, small beaches, coastal viewpoints, natural pools, and a few hiking trails. If you prefer to stay in a quieter town or a resort, you’ll find these outside of Funchal. Just be aware that you will need to rent a car, as the smaller towns are not as well connected to the rest of the island by public transportation and tours.

The north side of Madeira tends to be wet and very lush. The south side of the island tends to be drier and sunnier. Beaches are few and far between. There are a few small, sandy beaches (which become packed midday) so don’t expect long stretches of golden sand like you see on mainland Portugal. If you like the idea of spending some time on the beach and don’t want to contend with large crowds, consider staying at a resort with a beach.

Where to Stay in Madeira: On a Map

Here is a map of the best places to stay in Madeira. Each color corresponds to a different area of Madeira. The black markers indicate the top attractions in Madeira.

Best Places to Stay in Madeira: By Location

In this guide, budget hotels are 2-star properties, mid-range hotels are 3-star properties, upscale hotels are 4-star properties, and luxury hotels are 5-star properties.

IMPORTANT: Some properties have a 3-to-5-night minimum stay, so make sure you check the terms when choosing where to stay.

Funchal

Madeira’s Largest City

Funchal is the largest city and the capital of Madeira. This is the most convenient location to stay in, as there are hundreds of properties to choose from and many tours will start here in town. There is also quite a bit to do in Funchal and there’s a good chance you will spend at least one day here, visiting the sights in town, riding the cable car to the botanical gardens in Monte, and wine tasting.

Top Attractions in Funchal: Cable car to Monte, Madeira Botanical Garden, Monte Palace Tropical Garden, Madeira toboggan ride, and wine tasting at Blandy’s Wine Lodge and Pereira D’Oliveira all make the list of the best things to do in Funchal.

Pros of Staying in Funchal: Largest number of properties in Madeira; you can walk to many restaurants and sights in Funchal; the best place to stay if you do not plan to rent a car; many tours of the island start in Funchal; good location for getting to many hiking trails in Madeira; there are some resorts on the edge of town, if you want a property with a beach or water access

Cons of Staying in Funchal: If you stay in town, you will not get the resort/beach experience; more touristy than other locations in Madeira

Funchal, Madeira

Wine tasting in Funchal

Madeira Botanical Garden

Best Hotels in Funchal

LUXURY: Royal Savoy – Ocean Resort – Savoy Signature. If you want a 5-star resort experience, complete with multiple swimming pools, onsite restaurant, and ocean views, plus the ability to walk into town, look no farther. This resort does not have a beach, but it does have a protected swimming cove, and with its multiple swimming pools, you have several spots to spend the day, rather than driving to one of Madeira’s crowded beaches.

LUXURY: Les Suites at The Cliff Bay – PortoBay. This boutique property has a cliffside setting with gorgeous views of the sea. It gets exceptional reviews for its service, onsite restaurant, multiple swimming pools, and amenities. Les Suites is located just outside of Funchal, so you will have to drive or take a taxi into town, but it is a good pick for travelers who want a luxury stay without a big resort experience.

LUXURY: There are a lot to choose from in Funchal, but three more properties that really stood out are Barceló Funchal Oldtown (highly rated boutique hotel in the city center with a rooftop pool and amazing views of the city; we strongly considered staying at this hotel but preferred the ocean front setting of the Saccharum Resort), Quinta Jardins do Lago (located in the hills above Funchal, this resort gets exceptional reviews and prior guests rave about the botanical gardens and amenities), and Reid’s Palace, A Belmond Hotel (a large resort perched on cliffs that has 4 restaurants, a spa, outdoor swimming pool, and beautiful sea views).

UPSCALE: Castanheiro Boutique Hotel. Located in Funchal, this small hotel has a rooftop pool and terrace with views of the city. Take your pick between standard double rooms, junior suites, and family suites that can accommodate up to four people.

UPSCALE: Three House Hotel. Also located near the city center of Funchal, this hotel ticks all the boxes: excellent location, rooftop pool, fitness center, bar, well-appointed rooms, and a near perfect review score. Rooms range from studios to two-bedroom apartments.

MID-RANGE: Edificio Charles 103. This one-bedroom apartment is also located in the city center. It gets exceptional reviews and has a terrace with city views and fully equipped kitchen.

MID-RANGE: Bay View Apartment. This apartment is located outside of the city center, but it has an outdoor swimming pool and gorgeous views of Funchal from its balcony. This two-bedroom apartment can accommodate up to 4 people and is a great pick for families or small groups who want to stay near Funchal but not necessarily in the city.

BUDGET: Jaca Hostel Funchal. This hostel is located in the city center and is one of the top reviewed budget properties in Funchal. Rooms range from mixed dormitory rooms to private double rooms with a sea view.

Calheta

Small Coastal Town in Western Madeira

Calheta is a small coastal town that is located in southwestern Madeira. There are a few properties that sit right on the water and a few hotels/apartments located in town, a short drive from the ocean.

This is where we stayed in Madeira. We picked Calheta because it is the location of the Saccharum Resort & Spa, a highly rated 5-star hotel. We wanted access to the beach to go swimming, and access to the amenities that the hotel offered. We had a fantastic experience here. The service is top notch, there is an onsite spa and multiple swimming pools, plus a small swimming cove, where we typically spent our afternoons, swimming laps (we are also all triathletes so wanted to get those swims in 😊).

The Saccharum Resort & Spa also has several onsite restaurants. We were not impressed with the food, so many nights we walked to the nearby cluster of restaurants at the marina. Manifattura Di Gelato (great Italian food and homemade gelato) and Marina Azul Restaurante (seafood) were our favorite restaurants.

The swimming cove at Saccharum Resort & Spa

The big downside of staying in Calheta is its location. To get to most of the hiking trails in Madeira (the majority are located in the center or the east side of the island) we had to do a lot of driving. And since it is best to arrive early to the trailheads to get parking, that meant we were setting our alarms around 6:30 am each day and driving an hour to the trailheads.

We had a great time at the Saccharum Resort and still recommend it, but if you plan to do a lot of hiking in Madeira, consider staying in Funchal or the eastern side of the island, as you will spend much less time in the car, with a later wake up time each day.

Top Attractions in Calheta: There aren’t many sites to visit in Calheta. Praia da Calheta is the #1 attraction, as these sandy beaches are some of the largest sand beaches we saw in Madeira.

Pros of Staying Calheta: Quieter, smaller town than many others on this list. There are several resorts with beach/water access to choose from.

Cons of Staying in Calheta: Longer drive to get to many hiking trailheads and sights in Madeira. If you want to go out to dinner in Funchal, it is about a 30-minute drive without traffic. You will need to rent a car since Calheta is not well connected to the rest of the island by public transportation.

Praia da Calheta

The view of Calheta from our hotel room

Best Hotels in Calheta

LUXURY: Saccharum Resort and Spa – Savoy Signature. This is where we stayed and had a great experience. It has an ocean front setting and a long list of amenities, including a spa, infinity pool, indoor pool, fitness center, and multiple restaurants. It also has a beach bar and protected swimming cove, where we spent a lot of our time. Breakfast was great but the buffet and fine dining restaurants are mediocre, so we walked to the marina for dinner most nights. It is worth upgrading to the premium experience, to take advantage of all of the perks and amenities this hotel offers.

Saccharum Resort & Spa

The infinity pool at Saccharum Resort & Spa

UPSCALE: Zeza’s House. If you are a large family or group of friends, you can rent this entire holiday home that can accommodate 6 or more people. This 2-bedroom home has an outdoor swimming pool, free onsite parking, a fully equipped kitchen, and washing machine. It is located a short drive from the marina.

UPSCALE: Calheta Beach – All-Inclusive – Savoy Signature. This oceanfront property offers double rooms and suites with sea views. Onsite are three swimming pools and three restaurants. It has a very handy location near Praia da Calheta and the marina.

MID-RANGE: Socalco Nature Calheta. This unique hotel is built into the cliffs in Calheta. Some rooms feature stone walls and most rooms have sea views. The hotel offers free parking, a terrace, and restaurant. Click the link to see photos!

MID-RANGE: Estrela do Mar – Alojamento Local. Take your pick between a two-bedroom house and a Holiday Home, both which can accommodate up to 5 people. This small property gets rave reviews.

Southeastern Madeira

Santa Cruz, Machico & Caniçal

These three towns are located on the southeastern coast of Madeira. From here, it’s a short drive into Funchal, you aren’t far from the airport, and if you plan to hike some of Madeira’s best trails, you also won’t have too far to go (at least compared to Calheta).

If we visit Madeira again, this would be the place we’d consider staying. We spent the majority of our time on the eastern side of the island, because we did so many hikes here. Just be aware that to visit the sights on the northwestern end of Madeira, it will be a long drive.

Top Attractions In and Around Southeastern Madeira: PR8 Vereda da Ponta de São Lourenço hike, Praia da Machico, Miradouro da Ponta do Rosto, Vereda do Larano to Boca do Risco hike, and the International Airport of Madeira (not exactly an attraction but it will be a very short drive to and from the airport).

Pros of Staying in Southeastern Madeira: Convenient location for some of the top hiking trails in Madeira; quick drive to and from the airport; less touristy than Funchal with lots of options for apartments, resorts, and budget accommodations; relatively short drive to Funchal

Cons of staying in Southeastern Madeira: Very long drive to the west side of Madeira; it is best to rent a car to get around the island

Vereda da Ponta de São Lourenço hike

Praia de Machico

The view along the Vereda do Larano to Boca d0 Risco hike

Best Hotels in Southeastern Madeira

LUXURY: Albatroz Beach & Yacht Club. This resort is located in Santa Cruz, very close to the airport. Rooms range from double rooms in the Manor House to superior suites with a sea view. Onsite is free parking, a fitness center, three swimming pools, and a private beach area.

UPSCALE: Fort Bay Suite Apartments. These recently renovated apartments are located in the small, lovely town of Machico. There are multiple one-bedroom apartments to choose from, many of which can accommodate up to four people. Be aware that the property does not offer parking.

UPSCALE: Home Away From Home. This beautiful two-bedroom apartment is located in Caniçal, very close to the ocean and within walking distance of the beach. It has a kitchen and the apartment provides a children’s playground.

MID-RANGE: Casa São Lourenço. This two-bedroom apartment gets exceptional reviews. It has a fully equipped kitchen, free on-site parking, and washing machine. It is located in Caniçal.

MID-RANGE: Duplex da Fontinha. Located in Santa Cruz, this property gets near perfect reviews on Booking.com. This two-bedroom apartment comes with free onsite parking, a kitchen, two bathrooms, and a washing machine.

MID-RANGE: V.I.P. Baia. Located in Machico, this huge three-bedroom apartment is perfect for families and groups of up to six people. This apartment has a terrace with sea view, free private parking, and well-equipped kitchen. It gets exceptional reviews.

BUDGET: The Modern & Recycled House. This property is very unique! Also located in Machico, this beachfront one-bedroom property comes with a pool table, a bar, and balcony that overlooks the town. It gets near perfect reviews by prior guests.

Ribeira Brava & Ponta do Sol

Great Location on the Southern Coast

These two towns have a great location, sitting on the southern coast, in between Funchal and Calheta. You get a smaller town experience with a more convenient location than Calheta.

Top Attractions: Praia da Ribeira Brava, Cascata dos Anjos, short drive to Cabo Girão Skywalk and Teleférico das Fajãs do Cabo Girão

Pros of Staying in Ribeira Brava and Ponta do Sol: Good central location on the southern coast which helps minimize driving in Madeira; located near VE4, a highway that cuts straight across the island to northern Madeira; short drive to Funchal; charming coastal towns

Cons of Staying in Ribeira Brava and Ponta do Sol: Not many sights to visit in these towns but it is a good location for getting almost anywhere on the island; best to rent a car if you stay here

Ponta do Sol

Ponta do Sol beach

The view from the Cabo Girão Skywalk

Best Hotels in Ribeira Brava & Ponta do Sol

UPSCALE: Escarpa – The Madeira Hideaway. This property has a gorgeous setting on a terraced hillside that overlooks the sea. It is a relatively small property, offering double rooms and villas with a private pool, some of which have a balcony with amazing views of the sea. Onsite is an outdoor swimming pool, free parking, a bar, and restaurant.

UPSCALE: Estalagem Da Ponta Do Sol. This hotel is located in Ponta Do Sol and offers double rooms with a sea view or garden view. Onsite is a restaurant, bar, free parking, and an infinity pool.

UPSCALE: Enotel Sunset Bay. Located in Ponta do Sol, just a short walk from Ponta do Sol beach, this small hotel offers twin rooms with views of the sea. There is free onsite parking, an indoor swimming pool, fitness center, and restaurant.

UPSCALE: Castelo do Mar. This gorgeous property is located in Tábua, near Ribeira Brava. Set in a castle-like setting, rooms range from studios to suites, some with a spa bath and others with a private pool. One downside is that parking is on the street near the hotel.

MID-RANGE: Casa 212. This small house is located in the hills above the coast. It is a two-bedroom house that offers free parking, a kitchen, one bathroom, and balcony.

MID-RANGE: Casa dos Anjos. This one bedroom house is surrounded by banana plants and gets rave reviews for its location, kitchen, and value for the money. It offers free onsite parking.

Porto Moniz

Small Town in Northwest Madeira

Porto Moniz is a small town that is located in northwestern Madeira. It is well known for its natural pools and nearby beaches. It is a very pretty place with a few popular attractions nearby, but be aware that it can be a very long drive to Funchal, the airport, and many hiking trails.

Top Attractions in and around Porto Moniz: Porto Moniz Natural Swimming Pools, Ribeira da Janela, Achadas da Cruz cable car and beach

Pros of Staying in Porto Moniz: This is a beautiful, lush part of Madeira. It will be easy to visit the natural pools and ride the cable car to Achadas da Cruz early in the day before they get busy. There are also several very highly rated hotels in this area.

Cons of Staying in Porto Moniz: Least convenient location to stay in, as it is a long drive to Funchal, the airport, most hiking trails, and many top attractions in Madeira. Plan on renting a car if you choose to stay here.

Porto Moniz

Porto Moniz Natural Swimming Pools

Ribeira da Janela

Best Hotels in Porto Moniz

UPSCALE: Aqua Natura Bay. This beautiful oceanfront hotel gets wonderful reviews. It features both an outdoor and indoor swimming pool, a Turkish bath, fitness center, and onsite restaurant. Rooms range from twin rooms to family rooms that can accommodate up to four people.

UPSCALE: Aqua Natura Madeira. This property overlooks the Porto Moniz Natural Swimming Pools. It also gets very good reviews and prior guests give it high rating for its location, restaurant, and bar.

MID-RANGE: Atlantic Breeze by Atlantic Holiday. This one-bedroom apartment has a great location in Porto Moniz. It is located within walking distance of the Porto Moniz Natural Swimming Pools and features a balcony, kitchen, and free onsite parking.

MID-RANGE: Ponte House. Rent this entire house, which comes with two bedrooms, three bathrooms, a fully equipped kitchen, a washing machine, and free onsite parking. It is located in Porto Moniz, within walking distance of the natural swimming pools. It can accommodate up to six people, making it a great pick for families and small groups.

MID-RANGE: Recantos do Castanheiro. Located in the hills above Porto Moniz, stay in a historic stone one-bedroom or three-bedroom house. This is a great pick for those who want a quiet stay in a local setting, away from busy towns and resorts.

Porto Santo

Porto Santo is a smaller island in the archipelago. It’s possible to day trip here, but of course for a longer stay, you’ll need a hotel or apartment.

UPSCALE: Hotel Porto Santo & Spa. This beautiful resort has an outdoor swimming pool, gardens, and onsite restaurant. Take your pick from twin rooms, single rooms, a suite, or a family villa.

MID-RANGE: INATEL Porto Santo. This mid-range hotel has a large outdoor swimming pool, playground, and onsite restaurant. All rooms are small suites with mountain or sea views.

BUDGET: Porto Santo Destination. This hostel gets excellent reviews. It has multiple room types, including a glamping tent with ocean view.

Where to Stay in Madeira: Our Recommendations

Best Location in Madeira

The best location really depends on your length of stay and how much you plan to get out and do. If you plan to do a lot of hiking, it is best to stay in and around Funchal or near the eastern end of the island.

Best Hotels for Mid-Range Travelers

Our top picks for mid-range travelers include Casa São Lourenço (a two-bedroom apartment in Caniçal, on the east side of Madeira), V.I.P. Baia (a huge three-bedroom apartment in Machico), Ponte House (beautiful house in Porto Moniz), and Socalco Nature Calheta (unique houses built into the cliffside).

Best Hotels for Budget Travelers

For budget travelers, we recommend Jaca Hostel in Funchal, The Modern and Recycled House in Machico, and Porto Santo Destination if you plan to visit Porto Santo. Another recommendation is The Waves Hostel, a hostel that is located in São Vicente.

Best Hotels for Families

For families, our top picks are Bay View Apartment in Funchal, Zeza’s House in Calheta, V.I.P. Baia in Machico, Ponte House in Porto Moniz, and Home Away From Home in Caniçal.

Resorts in Madeira

If you want a resort stay, we recommend Royal Savoy – Ocean Resort in Funchal, Saccharum Resort & Spa in Calheta, and Aqua Natura Bay in Porto Moniz.

Luxury & Upscale Hotels in Madeira

Our top picks for higher end hotels include Three House Hotel (Funchal), Les Suites at Cliff Bay (Funchal), Escarpa – The Madeira Hideaway (Ponta do Sol), Royal Savoy – Ocean Resort (Funchal), and Saccharum Resort & Spa (Calheta).

Praça do Município in Funchal

Where to Stay in Madeira: Tips & Frequently Asked Questions

How Long Will You Be in Madeira?

If you are planning a short stay in Madeira (3 or fewer days), and plan to get out and hike and go sightseeing, we recommend staying in Funchal or the southeastern side of the island, as these are convenient locations to visit the top sights on the island. If you are planning a short stay and simply want to relax at a resort, then pick the resort that you prefer.

If you are planning a visit 4 days or longer, then you can pick a location anywhere on the island. You also have the option to stay in two different locations, as this could cut down on driving time.

How Much Does it Cost to Stay in Madeira?

The answer to this question depends on what time of year you will be here. Summer (June, July, August, and early September) have the highest prices of the year. Prices during this time can be 50% higher than spring and fall months. Prices will also be at their highest during the period of time from Christmas through New Year’s.

In the summer, a 3-star hotel can range from $100 to $250 USD per night, a 4-star hotel can range from $250 to 350 per night, and a 5-star hotel will start around $350.

How Far in Advance Should You Make Your Reservation?

If your visit will be during the busy summer season (mid-June through August), make your hotel reservations 6 months in advance.

If your visit is during the shoulder season (May to mid-June and mid-September through October), make your hotel reservations 4 months in advance.

If your visit is during the off season, make your reservations 1 to 2 months in advance.

When is the Best Time to Visit Madeira?

For warm weather and mostly sunny skies, play your visit from May into mid-June and mid-September through mid-October. Peak season is July and August. During this time, crowds are huge, hotel’s are expensive, and driving and parking in Madeira is extremely challenging. There is a second peak in the window between Christmas and New Year’s. The off season (January through April and November into December) has warm days and more rain and clouds than the rest of the year, but Madeira stays relatively warm, making it a great winter getaway.

If you have any questions about the best places to stay in Madeira, let us know in the comment section below.

More Information for Your Trip to Madeira & Portugal

MADEIRA: Here are 20 of the best things to do in Funchal, Madeira.

HIKES IN MADEIRA: Get started with our guide to the Best Hikes in Madeira. We also have trail guides for some of the top hikes, including Pico Arieiro to Pico Ruivo, the beautiful coastal hike Vereda da Ponta de São Lourenço, and Vereda do Larano, an off the beaten path hike.

BEST OF PORTUGAL: For a list of must-have experiences in Portugal, take a look at our Portugal Bucket List. Visit the Seven Wonders of Portugal, explore the country’s amazing cuisine and top foods to eat, get started planning your trip with 5 different ways to spend 10 days in Portugal.

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