Where to Stay in Madeira 2025: Our Top Areas & Best Hotels

Madeira completely caught us off guard. We knew it’d be beautiful — but not this beautiful. From dramatic cliffs and misty mountains to charming seaside towns where time moves slow, every corner of the island feels like a different world.

When we first arrived, we had no idea which part of the island to base ourselves in — should we stay near Funchal for the restaurants and energy, or escape to the quiet coastlines for those wild ocean views?

After exploring both sides (and switching hotels more than once), we finally figured out what actually makes sense depending on your travel style.

So whether you’re after a luxury clifftop resort, a mid-range stay with sunset views, or a cozy guesthouse surrounded by nature, this guide breaks down all the best places to stay in Madeira — based on our own experience, not just Google results.

Where to stay in Madeira: Our experience

When we first started figuring out where to stay in Madeira, we didn’t realize how much the area you choose shapes your trip. The island may look small on the map, but the vibe can change completely depending on which side you’re on.

We started our journey in Porto Moniz, tucked away in the far northwest. It’s a bit of a drive from Funchal, but honestly, that’s what makes it special.

The town is quiet, peaceful, and perfect for exploring the best spots in the western part — from Seixal Beach and Fanal Forest to dramatic viewpoints like Miradouro do Véu da Noiva and Eira da Achada.

The best part? We stayed just across the street from the natural swimming pools, so we could walk over in our hotel bathrobes and enjoy a swim before any of the tour buses arrived. Those calm, slow mornings became some of our favorite memories from the trip.

After that, we moved to Funchal, and everything changed — in a good way. Suddenly, there was nightlife, rooftop bars, and endless restaurants to try. It felt more alive, perfect for evenings out and sunset drinks by the marina.

It’s also a great base for exploring some of the famous levada hikes, like Levada do Moinho, without spending hours on the road each day.

We also spent a few nights in the mountains near Ribeiro Frio, which felt like a completely different world again — misty mornings, cooler temperatures, and the kind of lush greenery that makes you feel like you’ve stepped into a fairytale.

It’s beautiful, but also wetter and colder, so it’s not for everyone.

If we could sum it up, we’d say: the west is peaceful and wild, Funchal is lively and convenient, and the mountains are magical but moody. Each place gave us something unique.

Here’s what we learned about the best areas to stay in Madeira, and which ones might fit your travel style best.

Best areas to stay in Madeira

Before we dive in, here’s a quick map showing the best areas to stay in Madeira so you can get a feel for the island’s layout. It really helps to see how close everything is — from lively Funchal to peaceful Porto Moniz — and makes it easier to choose which part of Madeira fits your trip best.

Funchal

Located on the sunny south coast, Funchal is the island’s lively capital and easily the most convenient place to stay. It’s where we found everything in one spot — ocean views, rooftop bars, charming old streets, and easy access to the island’s main attractions.

We loved ending our trip here after exploring quieter parts of the island. The energy of Funchal gave us a whole new perspective — from sunset drinks by the marina to wandering the old town’s street art alleys at night.

The vibe is energetic but sometimes overwhelming. If you plan to rent a car in Madeira, you might have trouble parking in this area.

Funchal is a great base to visit Miradouro da Eira do Serrado, hike the Pico do Areeiro, and Levada do Balcões. Cabo Girão Skywalk is also nearby. We loved spending our afternoons on Praia do Garajau beach.

Tip: We recommend staying around the Lido promenade or São Martinho if you prefer sea access and modern hotels.

✅ Pros: Great food scene, walkable, central for day trips
❌ Cons: Parking and traffic can be tricky
⭐️ Best for: First-time visitors who want convenience, comfort, and lively evenings.

Calheta

Set on the island’s warm south coast, Calheta is where we found the most relaxing atmosphere. It’s one of the few places with a sandy beach, which makes it ideal for swimming — especially if you’re traveling with kids.

The area has a calm, sunny vibe almost year-round, surrounded by cliffs, banana plantations, and cozy cafés near the marina. It’s small, but that’s exactly what makes it feel peaceful and local.

Tip: It’s near the starting point of the popular Levada das 25 Fontes hike.

✅ Pros: Sunny weather, calm beach, peaceful atmosphere
❌ Cons: Limited nightlife and fewer restaurant options
⭐️ Best for: Couples and families looking for a relaxing seaside stay with easy access to the west coast.

Porto Moniz

On the rugged northwest coast, Porto Moniz offers one of the most unique settings on the island — a small seaside town surrounded by cliffs, waterfalls, and endless Atlantic views.

It’s best known for its natural lava pools, where crystal-clear seawater creates perfect swimming spots right by the ocean. Despite its remote location, the area feels welcoming and well-kept, with a few lovely boutique-style hotels and ocean-view restaurants that make it easy to settle in for a few days.

We found Porto Moniz ideal for travelers who prefer nature over nightlife. It’s quiet but not isolated — and makes a great base for exploring the west and north, including Seixal Beach, Fanal Forest, and several dramatic viewpoints nearby.

The coastal drives here are some of the most scenic on the island, and everything feels slower in the best way possible.

Tip: Don’t miss Miradouro Garganta Funda, one of the most impressive viewpoints — it’s a short drive away.

✅ Pros: Peaceful base with ocean views, close to major west coast sights
❌ Cons: Long drive from Funchal, limited nightlife
⭐️ Best for: Travelers who want a quiet yet comfortable stay surrounded by nature and sea views.

Ponta do Sol

Ponta do Sol is a small seaside town that perfectly balances charm and convenience. The name literally means “Point of the Sun”, and it lives up to it — this part of the island gets some of the best sunsets and warm weather year-round.

The town is framed by cliffs and dotted with colorful houses, a few stylish boutique hotels, and cafés that spill out onto the cobblestone streets.

We think Ponta do Sol is a great choice if you want something smaller than Funchal but still lively enough in the evenings. There’s a creative, laid-back atmosphere here, with yoga retreats, art events, and a growing community of digital nomads.

The central location also makes it easy to explore both the west and south coasts without long drives.

✅ Pros: Sunny weather, central location, relaxed yet social vibe
❌ Cons: Small beach with pebbles, limited parking near the center
⭐️ Best for: Travelers looking for a beautiful, creative coastal town with easy access to both sides of the island.

Santana

Located on the lush north coast, Santana is known for its postcard-perfect traditional A-frame houses and dramatic mountain scenery. It’s a quieter, more rural part of the island — think green valleys, misty mornings, and fresh air.

The village itself is small, but the surroundings are what make it special, with easy access to some of the island’s best levada trails like Levada do Caldeirão Verde and Levada da Silveira. We also loved the Vereda do Larano hike nearby.

We think Santana is a great base if you want to experience the more authentic, natural side of Madeira. It’s ideal for hiking and exploring without crowds, and there are a few charming eco-lodges and boutique hotels.

The roads here are winding but scenic, offering endless viewpoints along the way.

✅ Pros: Beautiful nature, close to top levada hikes, peaceful atmosphere
❌ Cons: Wetter and cooler than the south, limited dining options
⭐️ Best for: Nature lovers and hikers who want a quiet stay surrounded by greenery and mountain views.

Machico

Just a short drive from the airport on the east coast, Machico is one of the island’s oldest towns and a great option for a relaxed, convenient stay.

It’s much quieter than Funchal but still offers everything you might need — a sandy beach, a scenic promenade, a few excellent seafood restaurants, and an authentic local atmosphere.

The location makes it ideal for travelers arriving late or catching an early flight, without feeling like you’re missing out on Madeira’s charm.

We liked that Machico strikes a balance between accessibility and calm. It’s also a smart base for exploring Ponta de São Lourenço, one of the most famous viewpoints, or heading inland toward Pico do Facho for panoramic coastal views.

The town itself is walkable, easy to navigate, and great for short strolls along the beach after dinner.

✅ Pros: Close to the airport, sandy beach, convenient yet peaceful
❌ Cons: Less central for exploring the rest of the island
⭐️ Best for: Short stays, early flights, or travelers who want a calm start or end to their Madeira trip.

Best hotels in Madeira

This list brings together our favorite places to stay around Madeira — places we’ve either experienced firsthand or would confidently book after exploring every corner of the island.

We’ve done the research so you can quickly find the hotels that actually match your style and travel plans.

Best Hotels in Funchal

Funchal is the heart of Madeira — lively, walkable, and filled with ocean views, rooftop bars, and great restaurants. It’s the best place to stay if you want to mix sightseeing with comfort and still be close to everything.

These are our favorite hotels that truly stand out from the rest.

• Apartamentos Turisticos Atlantida $
• Melia Madeira Mare $$
• Hotel Porto Mare – PortoBay $$$ (Our top pick)

Apartamentos Turisticos Atlantida $

Apartamentos Turisticos Atlantida are a budget-friendly stay that doesn’t feel cheap. The apartments are bright, modern, and spacious — most with kitchenettes and small balconies.

What really sets it apart from other affordable options is the location: right in the center of Funchal, just a few minutes from the marina and Mercado dos Lavradores. It’s ideal if you want flexibility, local atmosphere, and value for money all in one.

⭐️ Best for: Travelers who want comfort and convenience without spending too much.
👉 Check availability and current prices →

Melia Madeira Mare $$

Melia Madeira Mare is a mid-range oceanfront hotel that offers resort comfort without the high-end price tag. Unlike many others in its range, the hotel has a prime spot on the Lido promenade, meaning you can walk straight out to the coastal paths, swim in natural pools, or dine with sea views.

The rooms are spacious and most have balconies overlooking the Atlantic, while the pool area and spa give it a relaxed, polished feel. If you want a modern stay with resort comfort but still close to the city, this is a great pick.

⭐️ Best for: Couples who want sea views, good amenities, and easy access to restaurants and swimming spots.
👉 Check availability and current prices →

Hotel Porto Mare – PortoBay $$$ (Our top pick)

We stayed here and honestly, it set the bar high. Hotel Porto Mare combines lush tropical gardens, several pools, and ocean-facing rooms in one of the most peaceful corners of Funchal.

What makes it special is the atmosphere — it feels personal, quiet, and beautifully maintained, with staff who genuinely go the extra mile. The breakfast buffet was one of the best we’ve had on the island, and we loved walking along the promenade straight from the hotel.

It’s luxurious without being over the top, which is rare in this area. If you’re looking for a resort that feels both elegant and welcoming, this is it.

⭐️ Best for: Travelers who want a full-service resort experience with warm hospitality, tropical gardens, and stunning ocean views.
👉 Check availability and current prices →

Best Hotels in Calheta

Set on the sunny south coast, Calheta is all about relaxation — golden sand, ocean views, and warm weather almost all year. It’s quieter than Funchal.

Here are our top picks:

• Hotel Jardim Atlantico $
• Quinta das Vinhas $$
• Saccharum – Resort and Spa – Savoy Signature $$$

Hotel Jardim Atlantico $

A peaceful budget stay surrounded by nature, Hotel Jardim Atlantico is just a short drive from Calheta Beach. The rooms and studios are simple but clean and come with balconies overlooking the Atlantic or green hillsides.

There’s also a small pool, restaurant, and hiking trails starting right outside the property — a great alternative to staying directly in town. If you want somewhere quiet with great views and easy access to the coast, this is a solid choice.

⭐️ Best for: Budget travelers who want a peaceful stay surrounded by nature.
👉 Check availability and current prices →

Quinta das Vinhas $$ (Our top pick)

Set among vineyards and tropical gardens, Quinta das Vinhas feels like a countryside retreat even though it’s only minutes from the beach. The restored farmhouse and cottages have rustic charm with wooden beams, colorful tiles, and plenty of character.

Breakfast is served outdoors under the vines, and there’s a small pool overlooking the valley. It’s authentic, cozy, and much more personal than most hotels in the area.
If you love places with soul and history, this one’s hard to beat.

⭐️ Best for: Couples and travelers who prefer charm and authenticity over modern luxury.
👉 Check availability and current prices →

Saccharum – Resort and Spa – Savoy Signature $$$

This is Calheta’s standout luxury hotel, and for good reason. Built right into the cliffs beside the marina, Saccharum combines sleek design, infinity pools, and panoramic ocean views — all inspired by the island’s sugarcane history.

The rooms are elegant and modern, the rooftop pool is unforgettable, and the spa easily ranks among the best in Madeira. It’s luxurious but still feels laid-back. If you want modern comfort and wow-factor views in one of the sunniest corners, this is the place.

⭐️ Best for: Travelers who want stylish luxury, spa relaxation, and sea views in the sunniest area.
👉 Check availability and current prices →

Best Hotels in Porto Moniz

Porto Moniz area is best known for its natural lava pools, dramatic ocean views, and close proximity to some of the island’s top viewpoints. You’ll find plenty of small guesthouses and family-owned stays here — cozy, friendly, and often with unbeatable views.

Here are our top picks:

• The Jolie – Apartments by the Ocean $$
• Aqua Natura Madeira $$$
• Aqua Natura Bay $$$

The Jolie – Apartments by the Ocean $$

The Jolie is a modern mid-range stay that feels like home, located just steps from the natural pools. The apartments are bright, beautifully designed, and come with balconies overlooking the Atlantic.

We love the attention to detail — from the cozy interiors to the friendly hosts who make sure everything feels personal. Compared to many guesthouses in the area, this one stands out for its style and comfort without losing that local charm.

⭐️ Best for: Couples or small families who want a comfortable, independent stay with sea views.
👉 Check availability and current prices →

Aqua Natura Madeira $$$

Aqua Natura Madeira is a boutique oceanfront hotel that sits right above the famous natural pools, offering front-row sunset views from nearly every room. The rooms are modern and bright, and the on-site restaurant serves fresh local seafood with panoramic ocean views.

It’s smaller than a typical resort, which gives it a warm, welcoming feel — you’ll be on a first-name basis with the staff by the second day. If you want ocean views, great food, and a friendly local atmosphere, this is a fantastic choice.

⭐️ Best for: Travelers who want boutique comfort, local hospitality, and a direct oceanfront location.
👉 Check availability and current prices →

Aqua Natura Bay $$$ (Our top pick)

We stayed here and absolutely loved it. Aqua Natura Bay is the perfect mix of luxury and warmth — think infinity pool overlooking the Atlantic, stylish modern rooms, and staff who genuinely care.

The views from the balcony are some of the best we’ve had in Madeira, and breakfast overlooking the waves is unforgettable. It’s peaceful, beautifully run, and offers easy access to the natural pools just across the street.

If we ever return to the island, we wouldn’t hesitate to come back!

⭐️ Best for: Travelers who want a boutique-style resort with ocean views, top service, and access to Porto Moniz’s natural pools.
👉 Check availability and current prices →

Best Hotels in Ponta do Sol

Ponta do Sol is one of the most beautiful coastal towns — small, sunny, and full of charm. Set between dramatic cliffs and the Atlantic, it’s a perfect choice if you want a peaceful base.

The town has a few boutique hotels, historic villas, and oceanfront stays that make the most of its unique setting.

Here are our top picks:

• Villa Alto Boutique Hotel $$
• Enotel Sunset Bay $$$
• 1905 Zino’s Palace $$$

Villa Alto Boutique Hotel $$

Villa Alto is a lovely mid-range boutique hotel set in a restored old house high above the coast. The views over the ocean and banana terraces are incredible, and the atmosphere is relaxed and intimate. The rooms have a charming historical touch, decorated in an old-style design that gives the whole place a cozy, timeless feel.

There’s also a small pool and terrace that’s perfect for quiet mornings with a view. We liked that it feels tucked away yet close enough to reach Ponta do Sol’s beach and cafés within minutes.

⭐️ Best for: Couples who want a quiet, scenic stay that still feels close to town.
👉 Check availability and current prices →

Enotel Sunset Bay $$$ (Our top pick)

Set right on the seafront, Enotel Sunset Bay offers spacious rooms with balconies facing the ocean — every sunset feels like a show here. It has all the comfort of a resort but keeps a friendly, local vibe.

There’s an indoor pool, a small spa, and an excellent restaurant with sea views. Compared to other large hotels on the island, it feels more personal and perfectly placed for evening walks along the promenade.

If you want classic seaside comfort with great facilities, this is a solid choice.

⭐️ Best for: Travelers who want ocean views, resort-style comfort, and an easy walk to town and the beach.
👉 Check availability and current prices →

1905 Zino’s Palace $$$

Easily one of Madeira’s most elegant boutique hotels, 1905 Zino’s Palace feels like stepping into another era — pastel-colored walls, manicured gardens, and sweeping views of the Atlantic.

The interiors mix historic charm with contemporary style, and the service is just as refined. It’s peaceful but close enough to Ponta do Sol to explore easily, and the sunset views from the terrace are breathtaking.

⭐️ Best for: Travelers who love boutique luxury, history, and incredible sunsets.
👉 Check availability and current prices →

Best Hotels in Santana

Surrounded by lush forests and misty mountains, Santana is one of Madeira’s most scenic areas — perfect if you want to wake up to nature instead of city noise.

Here are our top picks:

• Casa do Ribeiro Frio $
• Pestana Quinta do Arco Nature & Rose Garden Hotel $$
• Hotel Quinta do Furão $$$

Casa do Ribeiro Frio $

Casa do Riberiro Frio is a cozy budget-friendly guesthouse tucked in the mountains near Ribeiro Frio. The rooms are simple but spotless, and the hosts make you feel like part of the family from the moment you arrive.

It’s surrounded by hiking trails and greenery, making it ideal if you want to experience the quieter, wilder side of Madeira. The mountain views are a bonus, and the on-site restaurant serves hearty homemade dishes.

If you’re after peace, nature, and local warmth, this is a great little find.

⭐️ Best for: Budget travelers who want a quiet base close to hiking trails and nature.
👉 Check availability and current prices →

Pestana Quinta do Arco Nature & Rose Garden Hotel $$

Pestana Quinta do Arco is a mid-range countryside hotel set within a lush rose garden, with over a thousand varieties in bloom during spring and summer. The bungalows and villas are spacious and private, surrounded by trees and mountain views.

It’s one of the few places where you can truly disconnect while still enjoying the comfort of a reputable hotel brand. We loved the peaceful setting and how close it is to the levadas without being isolated.

If you want a blend of nature, comfort, and space, this is the perfect balance.

⭐️ Best for: Couples or families who want a nature escape with comfort and privacy.
👉 Check availability and current prices →

Hotel Quinta do Furão $$$ (Our top pick)

This boutique cliffside hotel, Quinta do Furao, is a Madeira classic — and one of the most spectacular places to stay in the north. Perched above the ocean, it offers sweeping views, an infinity pool, a renowned restaurant, and cozy rooms with balconies overlooking the cliffs.

The setting feels remote but refined, and it’s easy to see why so many travelers call it unforgettable. We’d come back in a heartbeat for the views alone. If you want a stay that captures the magic of northern Madeira — wild, romantic, and peaceful — this is the one to book.

⭐️ Best for: Travelers who want boutique luxury, dramatic views, and easy access to hiking and nature.
👉 Check availability and current prices →

Best Hotels in Machico

Just a short drive from the airport, Machico is one of Madeira’s most underrated bases. It’s calm, coastal, and full of local charm — perfect if you want to stay somewhere peaceful.

Here are our top picks:

• White Waters Hotel $
• PortoBay Serra Golf $$
• Quinta Santo António Da Serra $$

White Waters Hotel $

White Waters Hotel is a small, family-run place right in the heart of Machico — just a short stroll from the beach and promenade. The rooms are bright, simple, and well-kept, with a few offering balconies and sea views.

It’s one of those places where you instantly feel at home thanks to the friendly staff and laid-back vibe. For the price, it’s hard to beat, especially if you want to stay somewhere clean, local, and walkable. If you want a budget stay, this is a great pick.

⭐️ Best for: Travelers on a budget who want a comfortable and friendly stay near the beach.
👉 Check availability and current prices →

PortoBay Serra Golf $$ (Our top pick)

We stayed at PortoBay Serra Golf and loved that it is set in a beautifully restored manor house surrounded by gardens and forest; it feels both elegant and homey. The rooms are warm and comfortable, and breakfast in the glass conservatory is the perfect way to start the day.

There’s also a small spa, an indoor pool, and easy access to nearby hiking trails. It’s the ideal mix of comfort and nature. If you’re looking for a stay that’s cozy, refined, and full of character, this is the one we’d happily book again.

⭐️ Best for: Travelers who want boutique comfort, greenery, and a peaceful setting with great service.
👉 Check availability and current prices →

Quinta Santo António Da Serra $$

Tucked away in the green hills above Machico, Quinta Santo António Da Serra feels like a countryside hideaway. The cottages are cozy, with fireplaces and garden views, and the whole place has that quiet, rural charm that’s hard to find elsewhere on the island.

We liked how peaceful it felt — surrounded by trees and walking paths, yet only a short drive to the coast. If you’re after fresh air and a touch of nature, this is a lovely choice.

⭐️ Best for: Couples or families who want a peaceful rural base that’s still close to town.
👉 Check availability and current prices →

FAQ

Where should first-time visitors stay in Madeira?

If it’s your first time visiting Madeira, Funchal is hands-down the best place to stay. It’s the island’s capital, full of great restaurants, ocean views, and easy access to tours and day trips.

For first-timers, it’s the most convenient and balanced base in this Madeira accommodation guide.

Where to stay in Madeira for nightlife?

For nightlife and dining, Funchal is again your best bet. The Lido area has plenty of oceanfront bars and restaurants, while the old town around Rua de Santa Maria is perfect for late dinners, live music, and local wine.

If you want somewhere smaller but still lively, Ponta do Sol has a relaxed evening scene with sunset bars and beach cafés that stay open late in summer.

What is the best place to stay in Madeira with kids?

For families, we recommend Calheta or Machico. Both towns have calm, sandy beaches (a rarity on Madeira) and plenty of space for kids to play.

Calheta is sunny year-round and home to some of the best family hotels in Madeira, while Machico offers a more local vibe and easy airport access.

Where to stay in Madeira without a car?

If you’re visiting Madeira without a car, stay in Funchal. It has the best public transport connections, easy access to taxis and tours, and everything you need within walking distance.

You can take organized day trips to places like Cabo Girão, Santana, and Porto Moniz directly from the city. Alternatively, the Lido area is perfect if you want to stay slightly outside the center but still be close to the action.

Final Thoughts on Where to Stay in Madeira

No matter where you base yourself, one thing’s certain — Madeira is the kind of island where every area feels like a new discovery. From Funchal’s lively harbor to the peaceful mountain villages of Santana and the wild coast of Porto Moniz, each corner has its own charm and rhythm.

If you’re visiting for the first time, Funchal makes everything easy — it’s central, walkable, and a great starting point for exploring the rest of the island. For a slower, sunnier stay, Calheta and Ponta do Sol are perfect for sea views and laid-back evenings, while the north is all about misty forests, hikes, and quiet mornings surrounded by nature.

We’d honestly recommend mixing it up — spend a few nights in Funchal for convenience, then move somewhere calmer for a change of pace. That’s how you really get to experience the best of Madeira.

Wherever you end up staying, the island’s size makes it easy to explore, and every drive comes with views that remind you why Madeira is one of Europe’s most breathtaking destinations.