Planning a trip to Madeira? Wondering where to stay in Funchal to have the best time?
Below are all my tips to choose your accommodation:
- best areas to stay in Funchal (and those to avoid)
- map to get you oriented
- best hotels in Funchal
- all my accommodation tips
- …
Find your gem!
This selection is completely independent, based on my experiences and research. I visited the region anonymously, making my own choices, and paying all my bills in full.
Best hotels in Funchal – Quick answers
If you don’t want to read the entire article describing all the best areas to stay in Funchal, here are my simple answers.
Summary of best areas by interest
Funchal is quite spread out. First you need to choose the area
- For romantic and historical stay, with access to many restaurants and to be close to all the town’s attractions: choose the old center
- For luxury hotels with splendid views, not too far from the city center: choose Sao Martinho
- For all inclusive stays and fun, choose the Lido area (public transportation available to get to the old town)
Best hotels
- Luxury: Hotel Les Suites at the Cliff Bay, in Sao Martinho – see photos and availability
- Luxury: Hotel Savoy Palace, in Sao Martinho – see photos and availability
- Luxury in Old Town: Hotel the Vine, in the old center – see photos and availability
- Boutique: Castanheiro Boutique Hotel, in the old town – see photos and availability
- Boutique: Sé Boutique Hotel, in the old center – see photos and availability
- 4 stars: Hotel Alto Lido, in the Lido area – see photos and availability
- All Inclusive: Enotel Lido, in the Lido area – see photos and availability
- Mid-range: Hotel Catedral, in the old center – see photos and availability
- Budget: Santa Maria Hostel – see photos and availability
Famous hotels in Madeira
- Hotel in Funchal where Churchill stayed
Hotel Reid’s Palace is a 5 star resort on a headland with garden sea and a stunning historical building!
– see photos and availability - Quinta Jardins do Lago
Famous for its botanical garden in the hotel
– see photos and availability
Top Rentals
If you’d rather have access to a kitchen and find cheaper accommodations, here are some rentals to consider:
- In Santa Maria – Romantic Studio with access to a pool and terrace with city and sea views
– see photos and availability - In old town – The Marketplace by Storytellers in a pedestrian street in the heart of Funchal
– see photos and availability - In Sao Martinho – Vilas Maria, charming studios with terraces
– see photos and availability - In Lido area – Aparthotel Pestana Palms Ocean, a mix hotel and apartment
– see photos and availability
or see the best rated accommodations in Funchal
Main tips to keep in mind
- Those can be great places to stay all year round. But some may close during Winter.
- Book early to have a choice and good price
- Always check the parking situation of your accommodation, if you plan on renting a car. You don’t want to spend 30min every evening trying to find a place!
Careful that inside the old town, some carparks open quite late e.g. 8am, so it cna be a problem if you want to go see the sunrise at Pico do Arieiro or catch an early flight. - Some streets in Funchal are really, really steep. If that scares you for driving, don’t pick an accommodation in the upper neighborhoods.
Need to rent a car in Madeira?
My tips:
- Compare prices on my favorite platform: Discovercars.com – one of the best rated comparison sites!
- Choose a car with enough power for the mountain roads
- And choose a car not too big, to easily manoeuver
- Consider their full coverage option – it for peace of mind!
- Book early to have a large choice of vehicles!
Where to stay in Funchal: best neighborhoods and areas
Ok, now let’s start looking into more details!
Before find the best hotel for you, you need to find the best areas of Funchal that would suits your expectation in terms of holidays.
Map of neighborhoods to stay in Funchal
Funchal is the capital of Madeira, a beautiful Portuguese island located in the Atlantic Ocean. There are several areas in Funchal that offer different experiences and attractions for visitors.
Let’s start by getting you oriented.
Here is a map, and below I will share the pros and cons of those areas.
Area 1 – Old Center
Pros
- Charming and historic atmosphere: Funchal’s Old Town is full of narrow cobblestone streets, colorful buildings, and historic architecture. Staying in this area can provide an authentic taste of Madeiran culture and heritage.
- Convenient location: The Old Town is located in the heart of Funchal, close to many of the city’s top attractions. It’s easy to explore the rest of the city on foot or by public transportation.
- Cultural attractions: The Old Town is home to several museums, art galleries, and historic landmarks, such as the the Cathedral of Funchal. – learn more about the best things to do in Funchal
- Dining and nightlife: The Old Town has a vibrant dining and nightlife scene, with plenty of traditional restaurants, bars, and cafes. It’s a great place to sample local cuisine and soak up the lively atmosphere.
Cons
- Noise: Due to its central location and busy streets, the Old Town can be quite noisy, especially at night. But if you stay in rentals in higher streets, you can find quieter options.
- Crowds: The Old Town is a popular tourist destination, and it can be crowded, especially during peak tourist season. This can make it difficult to find a quiet spot to relax.
- Limited parking: If you’re planning to rent a car during your stay in Funchal, be aware that parking in the Old Town can be limited and difficult to find.
- No beach/pool: While the Old Town is close to the water, there is no sandy beach in the immediate area. Check if your hotel has a pool.
My hotel selection
- Luxury in Old Town: Hotel the Vine, in the old center – see photos and availability
- 4 stars: Castanheiro Boutique Hotel – see photos and availability
- Boutique: Sé Boutique Hotel, in the old center – see photos and availability
- Mid-range: Hotel Catedral, in the old center – see photos and availability
- Apartment: The Marketplace by Storytellers in a pedestrian street in the heart of Funchal – see photos and availability
Area 2 – Lido area of Sao Martinho
Pros
- Convenient location: The Lido area is located just a short distance from the city center, and it’s easy to get around on foot or by public transportation.
- Pools: The Lido area is known for its swimming pools and seafront promenade, which are perfect for relaxing and enjoying the ocean views. And you can walk to Formosa beach.
- Tourist facilities: The Lido area has a high concentration of tourist facilities, including hotels, resorts, and tour operators. This can make it easier to book tours and activities, and there are often English-speaking staff to assist with your needs. It also has many restaurants and shops.
- Nightlife: The Lido area is home to several bars and clubs, making it a popular destination for nightlife.
Cons
- Crowds: The Lido area can be quite crowded, especially during peak tourist season. This can make it difficult to find a quiet spot to relax, and it may also lead to higher prices for accommodation and activities.
- Traffic: The Lido area is one of the busiest parts of Funchal, and traffic can be heavy at times. This can make it difficult to get around and may also create noise and pollution.
- Less traditional: The Lido area is a relatively modern part of Funchal, and it may not have the same traditional charm as some of the city’s older neighborhoods.
- Higher prices: Due to its popularity, the Lido area can be more expensive than other parts of Funchal. This may be a consideration for budget-conscious travelers.
My hotel selection
- All Inclusive: Enotel Lido, in the Lido area – see photos and availability
- Aparthotel Pestana Palms Ocean, a mix hotel and apartment – see photos and availability
- 4 stars: Hotel Alto Lido, in the Lido area – see photos and availability
- 4 stars: Hotel Porto Mare – Portobay – see photos and availability
Area 3 – Luxury hotels of Sao Martinho
Pros
- Luxury hotels on the sea front, the rest is residential
- Scenic views: São Martinho offers scenic views of the Atlantic Ocean, especially from the coastal promenade that runs along the neighborhood. It’s a great place to take a stroll and enjoy the sea views.
- Residential area: Unlike some other neighborhoods in Funchal, São Martinho is primarily a residential area except for the luxury hotels on the seafront. This means it’s generally quieter and more peaceful, with fewer crowds and less traffic.
Cons
- Location: São Martinho is located on the outskirts of the center, which means it’s further away from some of the major tourist attractions. It’s still easily accessible by public transportation, but it may not be the best choice if you want to be in the heart of the action.
- Limited nightlife: São Martinho is generally a quiet neighborhood, with fewer options for nightlife compared to some other areas of Funchal.
- Higher prices: Due to its popularity and desirable location, São Martinho can be more expensive than some other neighborhoods in Funchal.
My hotel selection
- Luxury: Hotel Les Suites at the Cliff Bay, in Sao Martinho – see photos and availability
- Luxury: Hotel Savoy Palace, in Sao Martinho – see photos and availability
- Luxury: Hotel Reid’s Palace is a 5 star resort on a headland with garden sea and a stunning historical building! – see photos and availability
- Studio – Vilas Maria, charming studios with terraces, in residential area – see photos and availability
Area 4 – Santa Maria
Pros
- Central location: Santa Maria is located in the heart of Funchal, close to many of the city’s main attractions, including the Mercado dos Lavradores and the Madeira Story Centre.
- Transport: It’s also well-connected by public transportation, making it easy to explore the rest of the island and close to the cable car to reach Monte
- Cultural attractions: It’s also a great place to experience Madeiran culture, with plenty of traditional shops, restaurants, and cafes.
- Nightlife: Santa Maria has a vibrant nightlife scene, with plenty of bars, clubs, and live music venues. It’s a great place to soak up the lively atmosphere and meet other travelers.
- Shopping: Santa Maria has a great range of shops and boutiques, selling everything from local crafts to designer clothing. It’s a great place to pick up souvenirs and gifts.
- Beach: this is where you can find a small pebble beach if you want to soak up the sun, it is called Praia do Almirante Reis.
Cons
- Noise: Due to its central location and busy streets, Santa Maria can be quite noisy, especially at night. This may be a consideration for light sleepers.
- Crowds: Santa Maria is a popular tourist destination, and it can be crowded, especially during peak tourist season. This can make it difficult to find a quiet spot to relax.
- Limited parking: If you’re planning to rent a car during your stay in Funchal, be aware that parking in Santa Maria can be limited and difficult to find.
- Higher prices: Due to its popularity and central location, Santa Maria can be more expensive than some other neighborhoods in Funchal. This may be a consideration for budget-conscious travelers.
My hotel selection
- 4 stars – Hotel Porto Santa Maria – Porto Bay (adults only) – see photos and availability
- Apartment – Romantic Studio with access to a pool and terrace with city and sea views – see photos and availability
- Budget: Santa Maria Hostel – see photos and availability
Areas to avoid in Funchal – where not to stay
Funchal is generally a safe and pleasant city, but there are a few areas that may not be ideal for visitors to stay in, as they can be less convenient:
- Monte: Located on a hill overlooking Funchal, Monte is a tranquil and picturesque neighborhood that offers stunning views of the city and the sea. However, the streets are very steep and access to the city center is not so easy. However it gives easy access to the main road through the mountains.
- Santo António: This neighborhood is located outside the city center and may be less convenient for tourists who want to explore the city’s attractions. It’s also a residential area, so there may be fewer tourist amenities.
- Sao Roque: This neighborhood is up in the hill over Funchal old town, it does not give easy access to the town.
And if you are still wondering if Funchal is the best place to stay in Madeira – check my complete guide to hotels in Madeira.
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But I also like other drinks and sweets!
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1. Les Suites at the Cliff Bay (5 stars)
Why stay at hotel Les Suites
This hotel offers a truly luxurious and unforgettable experience.
Situated on a clifftop overlooking the Atlantic Ocean, it boasts one of the most spectacular locations in Funchal. From your room or suite, you’ll be able to enjoy breathtaking views of the sea, as well as the lush greenery of the garden.
The hotel’s suites are spacious and the decor is elegant and modern, yet classic.
It is home to 3 restaurant, offering you an excellent choice of dining experiences.
Infos pratiques
- Area: Sao Martinho
- Type: 5 stars
- Restaurant: 3 restaurants
- Pool: one indoor, one outdoor
- Equipment: Fitness room, jacuzzi, spa, sauna
- Parking: free on site
- See photos, price and availability
2. Savoy Palace (5 stars)
Why stay at hotel Savoy Palace
The Savoy is the extravagance of a 5 star with contemporary and elegant style.
The hotel’s rooms and suites feature sleek and modern furnishings and state-of-the-art amenities. There is a choice of pools, spa amenities and exceptional dining options.
Don’t miss the impressive rooftop bar!
Infos pratiques
- Area: Sao Martinho
- Type: 5 stars
- Restaurant: 7 restaurants on side: lounge, international, Mediterranean…
- Pool: 2 pools (5styles of pools outdoors, one indoors)
- Equipment: Fitness room, yoga class, jacuzzi, spa, Solarium, Hammam…
- Parking: on site for a fee
- See photos, price and availability
3. The Vine (5 stars – old town)
Why stay at hotel The Vine
If you are looking for 5 stars, but want to be closed to all the town’s attraction, then consider the Vine.
Behind inside the old town, it offers less amenities and space, but it makes up for it in style. The atmosphere is chic and sophisticated.
And who wouldn’t enjoy the rooftop pool? I sure do!
Practical info
- Area: Old town
- Type: 5 stars
- Restaurant: 2 restaurants
- Pool: 1 outdoor pool with view and bar
- Equipment: Spa, Hammam, Solariim…
- Parking: free and on site
- See photos, price and availability
4. Castanheiro Boutique Hotel (4 stars – old town)
Why stay at Castanheiro Boutique Hotel
A charming booting hotel with a modern decor and great outdoor swimming pool.
Great combination of everything: location, decor, views, access to town!
Such a relaxing place!
Practical info
- Area: old town
- Type: 4 stars
- Restaurant: 2 options and many in town
- Pool: rooftop outdoor
- Equipment: spa, fitness room, spa
- Parking: on site for a fee
- See photos, price and availability
5. Alto Lido (4 stars)
Why stay at hotel Alto Lido
First, just step inside the hotel lobby is breathtaking. It is spectacular!
The rooms have a sea view either frontal or lateral. Their decor is elegant with a touch of originality without overpowering the view.
Everything you may need is right there.
Practical info
- Area: Lido
- Type: 4 stars
- Restaurant: yes
- Pool: A indoor, 1 outdoor, 1 outdoor for kids
- Equipment: spa, fitness room, solarium
- Parking: on side for a fee
- See photos, price and availability
6. Sé Boutique (4 stars – old town)
Why stay at Sé Hotel
Right in the heart of the city, near the cathedral.
The rooms are bright and the decor just makes you wan to smile with touches of bright colors and wood accent.
The original terrace is a great place to relax after a day of exploring.
Practical info
- Area: old town
- Type: 4 stars
- Restaurant: all you need in town
- Pool: indoor
- Equipment: Spa
- Parking: none
- See photos, price and availability
Plan your dream trip in Madeira thanks to my guide
- 7 maps to easily plan your itinerary
- 120+ pre-selected locations
- GPS coordinates direct to the carparks
- Tips to make the most of your time
- 260+ original photos to help you choose
7. Hotel Catedral (3 stars – old town)
Why stay at Hotel Catedral
Not the most modern decor (ok, it is outdated), but a fantastic location that allows you to explore easily.
Finding a good 3 star hotel in the city center is not easy, this one is clean, with nice staff, free parking and a rooftop terrace. It ticks a lot of boxes.
Practical info
- Area: old town
- Type: 3 stars
- Restaurant: all you need in town
- Pool: none
- Equipment: /
- Parking: free, nearby, booking required
- See photos, price and availability
8. Aparthotel Pestana Palms Ocean
Why stay at hotel Pestana Palms Ocean
Not everyone wants to eat out all the time. This combines the best of both: the facilities of a hotel with swimming pools and sea views, but a kitchen and all you need to enjoy a few simple meals in your apartment.
Infos pratiques
- Area: Lido
- Type: 4 stars
- Restaurant: 3 restaurants
- Pool: outdoor
- Equipment: Hammam, sauna
- Parking: free, on site
- See photos, price and availability
9. Apartments The Marketplace by Storytellers
Why stay at The Marketplace by Storytellers
I really enjoy the decor style: simple, elegant and warm! You feel good in those rooms.
From your apartment, you are very close to all the central attractions of Funchal. So maybe you can go pick some fruits and vegies from the Old Market to prepare a delicious meal in your kitchen!
Practical infopratiques
- Area: old town
- Type: Equivalent 3 stars
- Restaurant: all you need in town
- Pool: none
- Equipment: /
- Parking: public carpark nearby
- See photos, price and availability
Plan your trip to Mallorca:
10. Enotel Lido (all Inclusive 5 stars)
Why stay at hotel Enotel
An infinity pool with sea views, an indoor pool, ocean views and everything you could possibly need between excursions.
If you are looking for an all inclusive stay so as not to worry about anything, this is the place for you.
Practical info
- Area: Lido
- Type: 5 stars
- Restaurant: yes
- Pool: outdoor and indoor,
- Equipment: spa, fitness class, Hammam…
- Parking: free, on site
- See photos, price and availability
Want to see more of the best Madeira offers?
- 42 Madeira travel tips to plan an unforgettable trip – read article
- Where to stay in Madeira – best areas – read article
- 35 best things to do in Madeira – read article
- The best landscapes in Madeira in 40 pictures – read article
- The 7 cables cars in Madeira and their amazing views – read article
- 10 best hikes & levada walks in Madeira – reach article
- Tips to rent a car and drive around Madeira – read article
- 12 Madeira Hidden Gems – read article
- 4 Madeira Natural Pools (and 6 coastal alternatives) – read article
- 18 best beaches in Madeira – read article
- 7 best Madeira boat tours & trips – read article
Planning a trip to Madeira?
Check out my travel guide to help you plan:
Plan your dream trip in Madeira thanks to my guide
- 7 maps to easily plan your itinerary
- 120+ pre-selected locations
- GPS coordinates direct to the carparks
- Tips to make the most of your time
- 260+ original photos to help you choose
And keep track of your own trip!
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