Where to Stay in Madeira: Best Areas for First-Time and Repeat Visitors

Updated 4th February 2026

Choosing where to stay in Madeira can make or break your trip. I’ve travelled around the island several times, staying in different parts of Funchal and along the south and north coasts, and I know how much your base affects what you can realistically see and do.

In this guide, I’ll show you the best areas to stay in Madeira for different travel styles and budgets, plus carefully selected hotels and apartments that are consistently well-reviewed. If you’d rather skip the guesswork, I also offer a personalised Portugal Trip Planning Consultation to help you choose the right base for your route and interests.

Why Funchal makes a great base

If you’re visiting Madeira without a car but want to explore the island, it makes most sense to choose accommodation in Funchal. Not only is the old town an interesting destination in its own right – see this post for what to do in Funchal – Madeira’s capital city is also the starting point for most organised tours and bus routes.

Lido or old town?

Many of the resort hotels are clustered around the Lido promenade, which is great for ocean views and swimming pools and handy for restaurants and shopping. It’s a bit of a trek into the old town from here, although there are regular buses and taxis that shouldn’t cost much. This is the most ‘touristy’ part of the city, good for families and doesn’t involve many hills.

There are several more original, boutique style hotels scattered throughout the hills of Funchal old town if you want a more unique experience. This is my personal preference as I prefer the architecture and character of the historical centre. Unless your hotel is right in the centre, it may involve a hill so bear that in mind. Buses and taxis are easy to use.

5-star hotels in Funchal Madeira

Spacious, elegant rooms set in peaceful landscaped gardens, with both indoor and outdoor pools plus a well-equipped spa. It’s slightly outside the centre but there’s a free shuttle to the marina and parking onsite.

I’d pick this if you want a calm retreat that still gives you easy access to Funchal without being in the middle of it. Check availability and prices

Funchal 4-star hotel

ARTS IN Hotel Conde Carvalhal

A restored Madeiran manor with character suites in the original house and more modern studios in the annex, plus lovely gardens and wide-ranging views over the city and sea. Free parking helps offset the hill.

This works well if you like somewhere with personality and don’t mind a bit of uphill walking in exchange for the views. Check availability and prices

3-star hotel

The Editory Garden Hotel (Funchal)

A well-located hotel within easy reach of the old town, with a rooftop pool, outdoor areas and recently updated rooms.

I’d suggest this if you want to stay in Funchal for convenience but prefer something a bit more relaxed than the larger resort hotels. Check availability and prices

The best boutique hotel in Funchal

A well-designed boutique hotel that blends historic architecture with modern comfort, plus a rooftop pool and hot tub with standout views. Rooms are comfortable and the breakfast is consistently good.

I’d go for this if you want something central but with a quieter feel than the main streets. Check availability and prices

Luxury apartments in Funchal

Bright, modern studios in the historic centre with well-equipped kitchenettes and a shared terrace. Hosts are responsive and the setup is straightforward.

This works well if you want flexibility to eat in occasionally and keep things simple. Check availability and prices

For a more in-depth look at Funchal accommodation, see my Best Hotels & Apartments in Funchal guide.

PLACES TO STAY IN MADEIRA EAST OF FUNCHAL

Why stay in Machico

If you’re looking for golden sands, Machico is one of the few beaches in Madeira where you’ll find them. The U-shaped bay makes for calm waters, too. Close to the airport and motorway and served by several daily buses, the small, attractive town has all you need for a relaxed holiday with or without a car.

Accommodation in Machico

White Waters Hotel

A family-run 4-star hotel right on the main square, with bright rooms, a rooftop terrace and an excellent restaurant, all a short walk from the beach.

You’d pick this if you want a relaxed base near the sand without needing to think too much about logistics. Check availability and prices

Machico apartments

Feeling Like Home Machico

Modern, well-equipped apartments with good sea views and parking included, which makes a difference if you’re driving. This suits you if you want space and independence without sacrificing comfort. Check availability and prices

Casa Do Pico

Bright, spacious apartments in a quieter area, still within easy reach of the beach and town centre.
A good option if you want somewhere calm to come back to at the end of the day. Check availability and prices

Using Santa Cruz as a place to stay on Madeira Island

Smaller than Machico but even closer to the airport is the coastal village of Santa Cruz. It has a pretty historical centre with a few cafés and restaurants, a market and a delightful promenade.

Where to stay in Santa Cruz

5-star hotel

A small luxury hotel with spacious sea-view rooms, direct access to the oceanfront and multiple pools within its private grounds.

I’d choose this if you want something polished and quiet, especially for a short stay near the airport.  Check availability and prices

4-star hotel in Santa Cruz

Santa Cruz Village Hotel

Comfortable rooms with balconies, an outdoor pool and restaurant, all within walking distance of the village centre.

This works well if you want something low-key and convenient. Check availability and prices

Amazing villa in Santa Cruz

A beachfront 3-bedroom villa with a private pool, sea access and outdoor space to properly relax.
You’d pick this if you want privacy and space, especially for a family or small group. Check availability and prices

WHERE TO STAY WEST OF FUNCHAL

Sunny Ponta do Sol

Ponta do Sol is a small, attractive town on the southern coast of Madeira with a pebble beach and could be a possible base if you have a car or stay in a hotel that offers transfers. There’s some interesting urban art scattered throughout the centre.

Hotels in Madeira – Ponta do Sol

4-star

Estalagem Da Ponta Do Sol

A minimalist design hotel set on a cliff with an infinity pool and wide ocean views, plus bright rooms with floor-to-ceiling windows.

I’d recommend this if you want somewhere with a bit of wow factor and don’t mind being slightly removed from the centre. Check availability and prices

Guesthouse in Ponta do Sol

A restored historic residence with views over banana terraces or the ocean, plus a pool and free parking.
This suits you if you prefer somewhere with character rather than a standard hotel feel. Check availability and prices

Ponta do Sol apartments

Blue House

Modern apartments near Lugar de Baixo beach with a pool, terrace and lift access (which you’ll appreciate after a day out). A practical option if you want apartment-style flexibility with a few hotel-like perks. Check availability and prices

Stay in Calheta for the marina and sandy beach

The addition of a marina and imported golden sand from Morocco to create a small beach has raised the profile and appeal of Calheta beyond the number of restaurants and cafés. It’s also home to a vintage sugar cane factory and a contemporary arts centre should you be looking for some cultural activities.

Unless your accommodation offers regular transfers to Funchal, or you’re happy to stay put, you’ll probably need a car to get around the rest of Madeira. With a vehicle, you have good access from Calheta to many of the popular walking trails in the west of the island.

Special places to stay near Calheta

5-star luxury

A large, design-led resort overlooking the marina with multiple pools, spa facilities and sea-view rooms, plus some interesting nods to the sugar cane industry.
You’d choose this if you want a full resort setup and don’t plan to move around too much each day. Check availability and prices

4-star accommodation

A traditional manor house set among vineyards with spacious rooms, gardens and two pools, plus the option of wine-related experiences.

This works well if you want something quieter and more rural (but you’ll need a car). Check availability and prices

Beautiful Jardim da Mar village

This delightful coastal village is a maze of cobbled streets and cute cottages with flower-filled gardens and stunning views. You need a car if you want to go exploring but note that many of these lanes are too narrow to drive down so you may need to leave your vehicle in the central car park and walk to your accommodation.

Villa Flora

A peaceful 3-bedroom villa with a heated pool, garden and wide ocean views in one of Madeira’s prettiest villages.
You’d pick this if you’re happy with the car-park-and-walk setup in exchange for a really tranquil setting. Check availability and prices

PLACES TO STAY IN THE NORTH OF MADEIRA

My special spot, Sao Vicente

My top choice for a place to stay on the north of Madeira would be São Vicente. Surrounded by gorgeously lush green mountains, it also has a black sand beach, a quaint village centre and a strip of seafront restaurants.

You can also explore Madeira from the inside at the nearby volcanic centre.

There are a few buses a day that connect São Vicente with Funchal and other places on the north of the island but a car would give you greater flexibility.

Madeira accommodation in São Vicente

A countryside hideaway with rooms and apartments, an indoor pool and views over lush green mountains, plus produce from its own garden.
This works well if you want a quiet base surrounded by nature (you’ll need a car). Check availability and prices

A charming property with an outdoor pool and gardens, within walking distance (just about) of São Vicente. A decent option if you want a mix of rural feel and some access to the village. Check availability and prices

Choose Porto Moniz for seawater pools

This small, northwesterly coastal town is most famous for its natural swimming pool complexes. Their popularity means there are several restaurants and accommodation options in Porto Moniz so it could be a useful place to stay if you don’t need much more to keep you entertained.

You can get to Porto Moniz by bus but the journey is long and unless you’re happy to stay put once you’re there, it would be best to have a car to give you some freedom.

Hotels in Madeira – Porto Moniz

4-star

A well-equipped hotel overlooking the natural pools, with sea-view balconies, spa facilities and a 24-hour restaurant.

You’d stay here if you want easy access to the pools and a bit more comfort at the end of the day. Check availability and prices

Studios and apartments in Porto Moniz

Studios by Aqua Natura Hotels

Compact studios right by the pools with access to hotel facilities like the spa and private beach area.
A practical choice if you want independence but still like having amenities on hand. Check availability and prices

The Jolie Apartments

A range of well-equipped apartments with sea or mountain views and outdoor space to relax.
This suits you if you want a bit more room and the option to self-cater. Check availability and prices

FAQs

Is Funchal the best place to stay in Madeira?
Funchal is convenient for first-time visitors who want restaurants, cable cars and tours nearby. However, west coast bases like Calheta suit travellers who prefer quieter evenings and easy access to walking trails.

Do I need a car if I stay outside Funchal?
In most cases, yes. Public transport is limited in rural areas, and a car gives you flexibility to reach levadas, viewpoints and villages.

What’s the best area for hiking in Madeira?
The north and west of the island are good bases for levada walks and mountain routes, but weather and access roads should always be checked locally.

Check out some of my other articles about Madeira:

10 Things To See And Do In Funchal

5 Magical Easy Walks in Madeira

Food And Drink You Should Try In Madeira