View to the city Funchal on the island Madeira Portugal

Updated: November 6, 2026

Where to Stay in Madeira, Portugal: 6 Best Areas & Hotels

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Hannah

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Wondering where to stay in Madeira? I’ve got you covered!

Madeira is a stunning mountainous island, and the landscape and weather can change dramatically depending on where you are. Where you stay can make a big difference, depending on your travel style. Whether you want the convenience of a city base, a mountain escape, or to gaze over the cliffs at the ocean, you can find it here.

With so much variety, it can be hard to decide where to stay! I loved staying in Funchal, but I can see how it’s not for everyone. Choosing the right place to stay can really shape your trip, and in this guide I’ll take you through the six best areas to base yourself in. Let’s get into it!

Don’t miss out!

My Top Choice

Rooftop pool at Barceló Funchal Oldtown, Portugal
Photo credit: Barceló Funchal Oldtown

This is the hotel and area I loved the most and suggest booking ASAP!

My FAVORITE area to stay in Madeira is Funchal’s Zona Velha. The historic center balances convenience and charm, and there’s so much to do here.

I recommend staying at Barceló Funchal Oldtown. It offers luxury without breaking the bank, and the location can’t be beat!

Where to Stay in Madeira Map

See the free interactive map here

Overview of the Best Areas to Stay in Madeira

Hannah taking a selfie at a viewpoint, Madeira, Portugal
Funchal is a great base for exploring Madeira
Hannah holding a glass of Poncha in Madeira, Portugal
Ponta do Sol is perfect for a laid-back coastal escape

If you’re visiting Madeira for the first time, I would definitely recommend staying in Funchal. That’s what I did, and I’m so glad I chose it! I joined tours that picked me up and took me all over the island, and I had so many amazing restaurants on my doorstep. Come to think of it, I probably would have come home a good few pounds heavier if Funchal weren’t so walkable! 

I also recommend using guided tours to get around, rather than relying on public transport. Buses are more geared towards locals than sightseeing, and having driven in Madeira myself, I can tell you that those steep, winding roads are no joke!

That being said, I visited some gorgeous places outside Funchal, and I can definitely see the appeal of staying somewhere quieter. I would recommend renting a car if you base yourself elsewhere, especially if you want to explore a lot, so you’ll need to be comfortable with that. 

Here’s a quick rundown of the six best areas to stay in Madeira:

  • Funchal (Zona Velha) – Best for first-time visitors – This is where I’d recommend staying if you want to make the most of your time in Madeira, because it’s so easy to explore the island from here, and it’s where the best restaurants are! Barceló Funchal Oldtown is a stylish option in a fantastic location – what’s not to love?
  • São Martinho – Best for a quiet, central stay – I really liked this part of Funchal! It’s got a more relaxed, resort-style atmosphere, but you can still get into the center easily. Pestana Promenade Ocean Resort Hotel is a fantastic 4-star hotel right by the waterfront promenade.
  • Calheta – Best for families and resort stays – If you’re dreaming of sunshine and lazy beach days, Calheta is a great choice! I spent a day here and loved the holiday atmosphere. Hotel Jardim Atlantico is a peaceful hillside hotel with beautiful coastal views.
  • Ponta do Sol – Best for a relaxed seaside getaway – I visited Ponta do Sol on a Jeep tour and immediately wanted to come back! It’s a pretty little town with a black pebble beach, and as its name suggests, it gets lots of sunshine! Enotel Sunset Bay is right by the waterfront, just across the road from the beach.
  • Caniço / Southeast Coast – Best for snorkeling and diving – If you love exploring underwater, Caniço is a fantastic place to stay because it’s close to the Garajau Marine Reserve, which is known for its clear waters and abundant marine life. Sentido Galosol is a gorgeous, modern resort with an excellent spa to enjoy between your underwater adventures.
  • North Coast – Best for nature lovers – The north coast is absolutely beautiful, with rugged cliffs and lots of lush scenery, but you’ll definitely need to rent a car! Solar de Boaventura is a charming hotel surrounded by nature, with a heated indoor pool that’s perfect for this cooler, wetter part of the island.

Important Tip

Multiple Madeira trips have taught me that this island doesn’t reward spontaneity when it comes to planning. The good places get snapped up months in advance, leaving overpriced and underwhelming options for last-minute travelers.

The sweet spot for booking Madeira accommodations is 3-4 months out—enough time to secure good rates but not so far ahead that you’re locking in plans excessively early.

Where to Stay in Madeira, Portugal

Funchal (Zona Velha)

Funchal Cable Car in Madeira, Portugal
If you stay here, be sure to take the cable car!
Hannah posing for a photo at the Botanical Garden in Madeira, Portugal
Explore the island and enjoy the stunning views

BEST FOR FIRST-TIME VISITORS

Pros

  • Very walkable, with tons of great restaurants
  • Lots of attractions close together
  • Fantastic base for exploring the rest of Madeira

Cons

  • The Old Town can feel quite touristy
  • Busy in places, especially around the main attractions

If it’s your first time in Madeira, I highly recommend staying in central Funchal. I based myself there, and I loved being able to walk pretty much everywhere, which I really value on a trip. In fact, most of the places I wanted to visit were within a 10-minute walk of my hotel, and there were so many amazing restaurants close by. 

One thing worth knowing is that Funchal’s historic center is loosely divided into two different areas: the Old Town (Zona Velha) and Sé. The two areas blur into one another, but generally, I preferred the area around Sé, which still attracts plenty of visitors but feels more like where people actually live.

I really enjoyed strolling along Funchal’s waterfront between sightseeing, and I was also impressed by how good the shopping was. But best of all, Funchal is a fantastic base for exploring the rest of Madeira! All the sightseeing tours I did picked me up from central Funchal at no extra cost, so I could head to the mountains or the coast without dealing with the island’s winding roads or parallel parking, shudder.

TURIM Santa Maria Hotel – $$$

Turim Santa Maria Hotel in Madeira Portugal
Photo credit: Turim Santa Maria Hotel
Turim Santa Maria Hotel in Madeira Portugal 1
Photo credit: Turim Santa Maria Hotel

TURIM Santa Maria Hotel is a sleek, modern option right in the heart of Funchal’s old town. The biggest draw here is the location! You can step out the door and be surrounded by Zona Velha’s restaurants and wine bars within minutes, ideal for evening exploration.

Despite its central location, the hotel itself feels calm and quiet. The style is minimalist and contemporary, and I think it’s perfect for those who want extra comfort without being tied to a resort. If you’re keen to sightsee during the day and enjoy social evenings in town, this is a really great base! Rooms start from €350 per night.

If TURIM Santa Maria Hotel is fully booked, Quinta Jardins do Lago is a gorgeous alternative if you fancy something a little more luxurious! It’s set in an elegant 18th-century mansion surrounded by lush botanical gardens, with a lovely outdoor pool and plenty of space to relax.

Another option is PortoBay Santa Maria, an adults-only hotel right on the waterfront in Funchal’s Old Town. It has two swimming pools and a spa, so it’s perfect if you want a resort feel without sacrificing that fantastic central location.

Barceló Funchal Oldtown – $$

Guestroom at Barceló Funchal Oldtown, Portugal
Photo credit: Barceló Funchal Oldtown
view from the rooftop at Barceló Funchal Oldtown, Portugal
Photo credit: Barceló Funchal Oldtown

In terms of location, Barceló Funchal Oldtown is hard to beat, but it offers more than just convenience! It’s a sleek and stylish hotel with a gorgeous rooftop pool, and you can enjoy the views over Funchal and the ocean from the comfort of a glamorous private cabana. Dreamy!

And hotels really don’t get more central than this one. It’s on one of Funchal’s main pedestrian streets, and the best restaurants are just a short walk away, sometimes mere steps away! I walked past this hotel multiple times per day when I was staying in Funchal, so staying here really will put you at the heart of the action. Plus, prices start from around €200 per night!

If Barceló Funchal Oldtown is fully booked, Esmeralda Holidays Apartments are a great alternative if you’d prefer a little more space and the freedom to prepare your own meals. They’re right in central Funchal, just a short walk from the marina, so the location is fantastic!

Another lovely option is Sé Boutique Hotel, a stylish 4-star hotel right by Funchal’s cathedral. It has an indoor swimming pool, a spa, and a rooftop bar, so it’s perfect if you want a few extra comforts during your stay.

Apartamentos Turísticos Atlántida – $

Hannah posing in her guestroom at Apartamentos Turísticos Atlántida, Madeira, Portugal
My excitement says it all; I loved my stay here!
View from room balcony in Apartamentos Turísticos Atlántida, Madeira, Portugal
The balcony came with a pretty nice view

For a budget-friendly stay in Madeira, Apartamentos Turísticos Atlantida is a fantastic choice – and I should know, because I stayed here! I showed up expecting a pretty small space, but I got a large room and bathroom, a separate living area, a fully equipped kitchen, and a cute little balcony to boot.

I really enjoyed my stay here as the hotel was very quiet, despite being in a super central location. I was able to walk everywhere in Funchal from here, and tour pickup was super easy. Plus, there was a chocolate shop right next door!

Prices start at around €90 per night, making it an excellent value for money.

If Apartamentos Turísticos Atlântida is fully booked, Funchal Design Hotel is a stylish 4-star hotel in the heart of Funchal. The rooms are modern and comfortable, and there’s a generous breakfast buffet to enjoy before heading out for the day.

Another great option is Ferreiros 184, which offers modern, spacious apartments just a short walk from Funchal’s cathedral. Each apartment has a kitchenette, so it’s a handy choice if you prefer a little more independence.

São Martinho

The coastal promenade in São Martinho Madeira Portugal
Enjoy a peaceful stay by the coast
Hannah having drink at Rooftop Bar 360, Madeira, Portugal
The rooftop bars here come with some pretty great views

BEST FOR A QUIET CENTRAL STAY

Pros

  • More spacious hotels, often with pools and rooftop bars
  • Close to central Funchal, with easy access to sightseeing tours

Cons

  • Not quite as many restaurants as the city center
  • A bit further out from Funchal’s main attractions

If you want to stay close to the action in Funchal but want plenty of pool time and vacation vibes, I recommend staying in São Martinho. This neighborhood is part of Funchal, but it feels noticeably different from the city center, with wider streets and bigger hotels. There’s definitely a resort atmosphere here, and I especially enjoyed coming here in the evenings to take in the sea views. 

One of the biggest advantages of staying in São Martinho is that you can enjoy a relaxing hotel stay without sacrificing convenience. Many hotels have lovely pools and rooftop bars, and most sightseeing tours still offer pickups in this area, so you don’t need to rent a car.

You’re also within walking distance of central Funchal, although exactly how long it’ll take depends on where your hotel is. I managed the walk in around 20 minutes!

There aren’t quite as many restaurants as in the center, but you’ll still have plenty of places to eat, and most of the hotels and resorts have options on site. Personally, I think São Martinho is ideal if you want to balance exploring Madeira with a bit of downtime by the pool.

The Cliff Bay – PortoBay – $$$

The Cliff Bay PortoBay Hotels & Resorts in Madeira Portugal
Photo credit: The Cliff Bay PortoBay Hotels & Resorts
The Cliff Bay PortoBay Hotels & Resorts in Madeira Portugal 1
Photo credit: The Cliff Bay PortoBay Hotels & Resorts

The Cliff Bay is one of Madeira’s most established high-end hotels. It’s set on a clifftop just west of central Funchal, so the location alone makes this place pretty spectacular. You get wide ocean views and a quieter setting, while still being close enough to head into the city for dinner or go sightseeing without too much travel time involved.

The atmosphere here is refined, and there’s even a Michelin-starred restaurant on site! I also have to give a shoutout to the gorgeous spa, which features a lovely Turkish bath and a very indulgent treatment menu. All in all, this 5-star hotel is the perfect choice if you’re planning a vacation where you mostly want to relax and recharge in Madeira.

Rooms here typically start at €330 per night, which isn’t bad considering its level of luxury!

If The Cliff Bay is fully booked, VidaMar Resort Hotel Madeira is another fantastic option for a luxurious seaside stay. It’s a large, contemporary resort with beautiful ocean views and several swimming pools, as well as plenty of restaurants to choose from!

Another lovely option is Pestana Vila Lido Madeira Ocean Hotel, which is right on the seafront. The highlight here is the huge infinity pool overlooking the Atlantic, which looks like a pretty dreamy place to spend an afternoon.

Pestana Promenade Ocean Resort Hotel – $$

Pestana Promenade Ocean Resort Hotel in Madeira Portugal (2)
Photo credit: Pestana Promenade Ocean Resort Hotel
Pestana Promenade Ocean Resort Hotel in Madeira Portugal (1)
Photo credit: Pestana Promenade Ocean Resort Hotel

Pestana Promenade Ocean Resort Hotel is a lovely 4-star resort right along Funchal’s seafront promenade. It’s a great choice if you want amenities and a big pool to relax by, but at a more modest price.

The hotel has a comfortable, resort-style setup, but it’s not too flashy. There’s a seafront pool, a lovely spa, and a stylish restaurant that serves fresh local seafood, so you’ve got everything you need for a chilled-out and comfortable stay. 

Rooms here typically start around €220 per night during peak season, including breakfast.

If Pestana Promenade is fully booked, Meliá Madeira Mare is another lovely seafront option nearby. It’s a stylish 5-star hotel with beautiful ocean views, a spa, and indoor and outdoor pools, which is a big bonus given how changeable Funchal’s weather can sometimes be.

Another great option is Vila Baleira Funchal, which offers a more laid-back stay in the same area. There’s a rooftop swimming pool with sea views, and you’ll have plenty of restaurants and shops within walking distance.

Apartamentos Turísticos Paraíso – $

Apartamentos Turisticos Paraiso in Madeira Portugal 1
Photo credit: Apartamentos Turisticos Paraiso

Apartamentos Turisticos Paraiso is a sleek and practical budget option in São Martinho. It’s a smart choice if you want simple accommodation with a good location, especially if you enjoy self-catering. Staying here means you’ll enjoy a coastal location, but it also makes it easy to keep costs down. You’ll be within easy reach of central Funchal by taxi or bus, and you can even walk into the center in about 20 minutes.

Double or twin rooms start from around €100 per night, but full apartments are also available.

If Apartamentos Turísticos Paraíso is fully booked, Golden Residence Hotel is a lovely alternative if you fancy more of a resort-style stay. It’s perched on a clifftop overlooking the Atlantic, with gorgeous sea views, swimming pools, and a spa where you can relax after a busy day of sightseeing!

Another great option is Terrace Mar Suite Hotel, which is a more affordable choice in the same area. There’s a rooftop pool where you can soak up the sunshine, and you’re just a short walk from the waterfront promenade.

Why We Book Hotels on booking.com

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Calheta

A beach in Calheta, Madeira Portugal
Loved the beach vibes here in Calheta
Hannah having a cold brisa at Calheta, Madeira Portugal
Beach days and a cold drink? I’m in

BEST FOR FAMILIES OR RESORT STAYS

Pros

  • One of the sunniest parts of Madeira, with lovely sandy beaches
  • Great for families and relaxing resort holidays

Cons

  • Not a huge amount to do beyond the beaches and resorts
  • You’ll need a rental car to explore the rest of Madeira

If you’re looking for a beach holiday in Madeira, I think Calheta is one of the best places to stay! I spent a day here during my trip, and I was amazed by how different it felt from Funchal.

Madeira has tons of different microclimates, and Calheta is known for being one of the sunniest spots on the island. It was cloudy when I left Funchal, but when I arrived in Calheta, it was all blue skies and sunshine. I couldn’t believe the difference!

Calheta also has something that’s surprisingly rare in Madeira: golden sandy beaches! The sand was actually imported from Morocco, and the sheltered swimming areas make this a particularly good spot for families.

There are plenty of lovely resorts around here, and the whole area has a relaxed holiday atmosphere. However, there’s not a huge amount to do beyond enjoying the beaches and water activities.

Personally, I’d recommend Calheta if you want to spend most of your holiday relaxing. If you want to hike and sightsee, you can rent a car to explore the rest of the island. 

Calheta Beach – $$$

Calheta Beach in Madeira Portugal
Photo credit: Calheta Beach
Calheta Beach in Madeira Portugal 1
Photo credit: Calheta Beach

Calheta Beach is a big, 4-star resort with a lovely swimming pool, and it’s right by Calheta’s sandy beaches and marina. If you’re coming to Madeira for a beach holiday, I think you’d struggle to find a more convenient spot!

The hotel also offers an all-inclusive option, which is especially handy for families who want to relax without worrying about where to eat every day. Plus, you’re close to the marina for boat trips, and if you’ve rented a car, you can easily head off to explore the west of the island.

Rooms here typically start around €300 per night during peak season.

If Calheta Beach is fully booked, Socalco Nature Calheta is a gorgeous boutique hotel with a much more intimate feel. It’s surrounded by greenery, with beautiful ocean views and an outdoor swimming pool, so it’s perfect if you fancy a peaceful getaway.

Another lovely option is Quinta das Vinhas, a charming property set among vineyards in the hills above Calheta. It feels very rural, but it still has a swimming pool, so it’s a great choice if you’d rather escape the busy beachfront resorts.

Hotel Jardim Atlântico – $$

Hotel Jardim Atlantico in Madeira Portugal
Photo credit: Hotel Jardim Atlântico
View from Hotel Jardim Atlantico in Madeira Portugal
Photo credit: Hotel Jardim Atlântico

I like Hotel Jardim Atlântico because it offers a calmer alternative to Calheta’s beachfront resorts. It’s set slightly above the coast, which gives it a quieter, more open feel and lovely views over the surrounding landscape. This is a great option if you want to be surrounded by nature and gorgeous scenery, and prefer peace and quiet to busy resorts.

Rooms typically start around €150 per night, or around €220 for a sea view bungalow with a private terrace.

If Hotel Jardim Atlântico is fully booked, Les Terrasses Suites is a fantastic alternative with beautiful ocean views and an outdoor swimming pool. The spacious, apartment-style accommodation is ideal if you’d like a bit more room to spread out during your stay!

For something a little different, check out Calheta Glamping Pods. These cozy pods offer a unique stay grounded in nature, with beautiful views and a peaceful atmosphere.

Boutique Hotel Jardim Do Mar – $$

Boutique Hotel Jardim Do Mar in Madeira Portugal
Photo credit: Boutique Hotel Jardim Do Mar
Boutique Hotel Jardim Do Mar in Madeira Portugal 1
Photo credit: Boutique Hotel Jardim Do Mar

Boutique Hotel Jardim Do Mar is a small, personal hotel located in the seaside village of Jardim do Mar, just south of Calheta. This is a lovely option if you’re looking for something that feels more local, with the ocean right on your doorstep and a noticeably slower pace of life.

I think that this hotel is ideal if you’re craving a quieter Madeira experience, away from the big resorts. It feels quiet and remote, and nothing beats waking up to endless ocean views if you ask me! This is the perfect place to get off the grid, soak in local culture, and recharge your batteries without spending a fortune.

Rooms generally start from around €160 per night.

Alternatively, Marina Rooms is another good option to consider because it’s simple but clean and modern, and as the name suggests, it’s very close to the marina. I think it’s perfect if you’re planning to spend most of your time on the beach!

Another option I really like is The Rum Inn, which has a friendly atmosphere and plenty of character. It’s just a few minutes’ walk from the sea, so you can easily head down to the waterfront whenever you fancy.

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Ponta do Sol

Ponta do Sol village seen on a jeep tour in Madeira, Portugal
Relaxed beach getaway? Ponta do Sol has you covered
A street in Ponta do Sol, Madeira, Portugal
I loved wandering around these quiet streets

BEST FOR DIGITAL NOMADS

Pros

  • One of the sunniest areas in Madeira
  • Popular with digital nomads, with a free coworking space and a friendly community
  • 15-minute drive from Funchal

Cons

  • Small town with limited restaurants and things to do
  • A rental car is useful for exploring the rest of the island

I initially visited Ponta do Sol on a Jeep tour of Madeira, and I immediately made a mental note that I wanted to come back! It’s such a sweet little town, with a black pebble beach and a small but colorful waterfront. Just behind that, you’ve also got a handful of winding streets with some nice restaurants – I had a lovely lunch at The Old Pharmacy. 

It’s located on Madeira’s southwest coast, between Funchal and Calheta, and it’s one of the sunniest spots on the island. There’s not a huge amount to do here, but it’s a perfect place to take it easy and spend a few days relaxing by the sea.

Interestingly, Ponta do Sol is also a major digital nomad hotspot! There’s even a free coworking space, plus an established community of remote workers who organize social events and meetups. As someone who works remotely, I can definitely see the appeal of spending time here. 

All in all, I would recommend Ponta do Sol if you’re looking for a quieter stay. The town itself is compact and walkable, but I would highly recommend renting a car for exploring other parts of Madeira.

1905 Zino’s Palace – $$$

1905 Zino's Palace in Madeira Portugal
Photo credit: 1905 Zino’s Palace
1905 Zino's Palace in Madeira Portugal 1
Photo credit: 1905 Zino’s Palace

If you want to stay somewhere with a bit of history behind it, allow me to introduce you to 1905 Zino’s Palace. This striking pink palace dates back to the 19th century, when it was used as a summer residence for the wealthy Zino family. Nowadays, it’s a boutique hotel with just nine rooms, so it’s much more intimate than Madeira’s larger resorts.

The rooms are elegantly decorated with a mix of historic charm and modern comforts, and there’s an outdoor swimming pool with views over the Atlantic. You’ll also find a restaurant on site, plus a terrace where you can sit back and watch the sunset.

The hotel is located in Lugar de Baixo, just outside Ponta do Sol, and there’s free parking if you’ve rented a car. I think it’s a fantastic choice for couples who want somewhere peaceful with a bit more character!

Rooms here typically start around €300 per night during peak season.

If 1905 Zino’s Palace is fully booked, Dazkarizeh73 is worth checking out. It’s a stylish boutique property with a peaceful atmosphere and beautiful ocean views, making it a good alternative if you’d prefer somewhere smaller and more intimate than a traditional resort.

Enotel Sunset Bay – $$

Enotel Sunset Bay in Madeira Portugal
Photo credit: Enotel Sunset Bay

Enotel Sunset Bay is a comfortable mid-range hotel located right by the water in Ponta do Sol. The location is the biggest selling point here. You’re steps from the beach and waterfront, and everything in town is within easy walking distance.

The hotel itself is straightforward and easy to settle into, making it a good choice if you want sea views without paying luxury prices. We think it works well for travelers who plan to spend most of their time out exploring but still want a well-located base to return to at the end of the day.

Rooms typically start around €200 per night during peak season.

If Enotel Sunset Bay is fully booked, Casa Pereira is a more affordable alternative worth considering. It has a homely, guesthouse-style feel rather than the facilities of a larger hotel, so it’s a good choice if you’re looking for somewhere comfortable to stay without spending a fortune.

Villa Alto Boutique Hotel – $

Villa Alto Boutique Hotel in Madeira Portugal 1
Photo credit: Villa Alto Boutique Hotel
Villa Alto Boutique Hotel in Madeira Portugal
Photo credit: Villa Alto Boutique Hotel

Villa Alto Boutique Hotel is a simple, budget-friendly option just outside Ponta do Sol. It’s best suited to travelers who plan to be out exploring most of the day and don’t need many on-site amenities.

This hotel works particularly well if you’re road-tripping the island and want a quieter overnight base on the southwest coast. It’s a comfortable and practical choice if you’re looking to keep costs down while staying in a peaceful area.

Rooms here generally start from around €150 per night.

Related Read: If you need help planning the rest of your trip, see my 5-day Madeira itinerary for a seamless visit!

North Coast

Hannah standing on the edge in Porto Moniz on a jeep tour in Madeira, Portugal
Enjoy some of the best views on the North Coast!
Hannah taking photo in front of tree at Fanal forest, Madeira, Portugal
Getting lost in Fanal Forest

BEST FOR NATURE LOVERS

Pros

  • Lush scenery and some of the most dramatic landscapes on the island
  • Quieter and less touristy

Cons

  • Rainier and cooler than the south
  • A car is essential

If you’re coming to Madeira for the scenery rather than the sunshine, I think the north coast is the place to be! This is the Madeira you see in all those incredible landscape photos, with dramatic, volcanic scenery. 

I explored the north coast on a Jeep tour, visiting places like Seixal Beach, the famous natural swimming pools at Porto Moniz, and Fanal Forest. When I visited, the forest was so foggy it felt like something out of a ghost film!

This part of Madeira is fantastic for hiking and outdoor adventures, with plenty of levada walks and forest trails to explore. If you want a quieter village stay, I would suggest São Vicente, or  Porto Moniz is a great choice if you want to be close to the natural pools.

The main downside is the weather. The north coast is generally cooler, wetter, and cloudier than the south, so I wouldn’t recommend staying here if you’re dreaming of lazy beach days!

There are also fewer restaurants and hotels, and I’d definitely recommend renting a car. Public transport is limited, and the attractions are quite spread out. The main roads and tunnels make getting around fairly straightforward, but do be prepared for some steep, winding mountain roads!

Solar de Boaventura – $$

Solar de Boaventura in Madeira Portugal
Photo credit: Solar de Boaventura
Solar de Boaventura in Madeira Portugal 1
Photo credit: Solar de Boaventura

Solar de Boaventura is a charming rural stay surrounded by greenery and mountains. This is a great choice if you want to be fully immersed in nature and don’t mind being a little removed from the main coastal towns.

The setting is quiet and peaceful, and it works especially well for hikers or travelers planning to spend a lot of time exploring levada walks and mountain roads. There’s also a lovely spa on site, which is perfect for soaking sore muscles after all of that outdoor exploration – a must, if you ask me!

Rooms here typically start around €150 per night during peak season.

If Solar de Boaventura is fully booked, Hotel Euro Moniz is a good alternative in Porto Moniz. It’s close to the famous natural swimming pools, so I would recommend it if you’re keen to spend plenty of time enjoying them!

Alternatively, Pestana Quinta do Arco Nature & Rose Garden Hotel is worth considering if you’d prefer somewhere surrounded by nature. It’s set among extensive gardens, with spacious accommodation and a peaceful atmosphere that makes it a great base for a relaxing getaway.

Casa da Capelinha – $$

Casa da Capelinha in Madeira Portugal 1
Photo credit: Casa da Capelinha
Casa da Capelinha in Madeira Portugal
Photo credit: Casa da Capelinha

Casa da Capelinha is a charming, family-run property in Ponta Delgada, on Madeira’s north coast. It’s set in a restored manor house that’s been in the same family for over 200 years, and there’s even a 16th-century chapel on the grounds!

The accommodation is apartment-style, with fully equipped kitchens and private balconies, many overlooking the Atlantic. There’s also an outdoor swimming pool with sea views, plus a restaurant and bar where you can try local Madeiran dishes. Free parking is included, which is a big plus since I definitely recommend renting a car in this part of the island.

Location-wise, you’re just a short walk from the natural swimming pools at Ponta Delgada, with plenty of hiking trails and other attractions within driving distance. It’s a good middle ground if you want to enjoy Madeira’s wilder side without staying somewhere completely remote.

Rooms here typically start around €140 per night.

If Casa da Capelinha is fully booked, Estalagem do Vale is another option worth considering. It’s a traditional hotel set a little further inland, surrounded by green hills, with an outdoor swimming pool and a peaceful atmosphere.

Alternatively, North View Guesthouse offers a more modern stay with some impressive views of Madeira’s northern coastline. It’s a good choice if you’re looking for somewhere comfortable and straightforward to use as a base while exploring the island.

Hotel Costa Linda – $

Hotel Costa Linda in Madeira Portugal 1
Photo credit: Hotel Costa Linda
Hotel Costa Linda in Madeira Portugal
Photo credit: Hotel Costa Linda

Hotel Costa Linda is a simple budget stay that’s ideal if you’re spending most of your days outdoors. It’s a simple, affordable spot in the north, and it doesn’t come with a ton of extras, but what it does offer is a homey base to come back to between adventures. Oh, and a small pool for when you need to cool off!

The location is a big selling point here. The hotel is right by the waterfront, just a short walk from a black sand beach that’s popular with surfers. There’s also an on-site restaurant with an outdoor terrace, which is handy after a long day of exploring, especially since dining options are more limited in this part of Madeira.

Sea view rooms start from just €80, although there is a 2-night minimum stay.

If Hotel Costa Linda is fully booked, Ocean Garden is another affordable option worth checking out. It’s a two-bedroom loft close to the ocean, with more space and independence than you’d get in a traditional hotel room.

Alternatively, Gardens Guest House offers a homely stay in São Vicente. It’s surrounded by Madeira’s dramatic northern scenery, with impressive mountain views and a welcoming atmosphere.

Caniço / Southeast Coast

Sunset seen at the Miradouro do Cristo Rei overlook Madeira Portugal (2)
Sunset seen at the Miradouro do Cristo Rei overlook
A potato grouper seen diving in Madeira Portugal
Garajau Marine Reserve is nearby, where you can spot huge groupers, rays, and other marine life

BEST FOR CONVENIENCE

Pros

  • Fantastic snorkeling and diving, with easy access to the Garajau Marine Reserve
  • Oceanfront hotels with pools, often with direct access to the sea

Cons

  • Drier, more exposed landscape, without Madeira’s famous lush greenery
  • Less walkable than Funchal, with fewer restaurants and things to do

To be honest, I’m not sure that I would personally choose to stay in Caniço, but I can definitely see the appeal if you’re coming here for snorkeling or scuba diving. The main draw is the nearby Garajau Marine Reserve, home to all sorts of marine life, including huge groupers and rays. There’s also Reis Magos Beach, a popular spot for swimming and snorkeling, although it’s pebbly rather than sandy.

You’ll find some lovely oceanfront resorts around Caniço de Baixo, many with pools and direct access to the water. So, if you’re planning to spend most of your time diving and then relaxing at your hotel, I think this area could work really well.

However, I personally found the southeast coast a little underwhelming compared with the rest of Madeira. The landscape is much drier and more barren, and it doesn’t have the same charm as Funchal or the island’s traditional villages.

You’re only 15-20 minutes from Funchal by car, and I recommend renting one if you’re staying here, especially if you want to do some sightseeing. Caniço has some cool viewpoints, but it’s quite hilly, and not that easy to explore on foot.

Quinta Splendida Wellness & Botanical Garden – $$$

Quinta Splendida Wellness & Botanical Garden in Madeira Portugal
Photo credit: Quinta Splendida Wellness & Botanical Garden
Quinta Splendida Wellness & Botanical Garden in Madeira Portugal 1
Photo credit: Quinta Splendida Wellness & Botanical Garden

Quinta Splendida is set in Caniço, in a restored 19th-century manor house surrounded by an enormous botanical garden. And I really do mean enormous! There are over 1,000 different species of plants spread across the grounds, so you won’t have to go far for a scenic stroll.

The hotel has a large outdoor swimming pool and several restaurants, as well as a spa with an indoor pool, sauna, and treatments available. I think it’s a good choice if you want to spend a fair bit of time relaxing at your hotel, rather than rushing off sightseeing every morning.

There are several room types to choose from, including studios and apartments with kitchenettes, which are handy if you want the option of preparing your own meals. And while the hotel feels tucked away from the busier tourist areas, Funchal is just a 10 to 15-minute drive away.

Prices average around €250-€300 per night.

If Quinta Splendida is fully booked, Albatroz Beach & Yacht Club is worth considering if you’d rather stay by the ocean. It’s an upscale hotel close to the airport, with beautiful sea views and saltwater swimming pools built into the coastline.

Another option is Casa Velha do Palheiro Relais & Châteaux, which has more of a traditional country-house feel. It’s surrounded by extensive gardens and has a spa and golf course nearby, so there’s plenty to keep you occupied without venturing too far from the hotel.

Sentido Galosol – $$

Sentido Galosol in Madeira Portugal 1
Photo credit: Sentido Galosol

If you’re someone who likes to stay active on holiday, I think Sentido Galosol could be right up your street! This hotel in Caniço focuses on wellness and outdoor activities, and it’s especially well suited to travelers who want to spend plenty of time swimming, snorkeling, or diving.

There are two swimming pools, a well-equipped gym, and even spin classes available, so you’ll have no excuse to skip your workouts! Although personally, I think I’d be spending more time enjoying the spa facilities.

The hotel also has a restaurant overlooking the Atlantic, and get this, even the sauna has sea views! I know I said I probably wouldn’t stay in Caniço, but this hotel might just change my mind.

Rooms go for about €200 per night.

If Sentido Galosol is fully booked, The Views Oasis is another option worth checking out. It’s a large seafront hotel with indoor and outdoor swimming pools, a spa, and direct access to the waterfront promenade, so there’s plenty to enjoy without leaving the resort.

Alternatively, Ocean Gardens is a little quieter, but what it lacks in atmosphere, it more than makes up for in vistas! It’s set on a hillside overlooking the Atlantic, with a rooftop swimming pool and some pretty spectacular views towards Funchal.

Hotel Solar Bom Jesus – $

Hotel Solar Bom Jesus in Madeira Portugal
Photo credit: Hotel Solar Bom Jesus

Hotel Solar Bom Jesus is a simple and affordable hotel located in Santa Cruz, close to the airport. It’s a great choice if you’ve got a late arrival or an early departure, because it’s clean and convenient, and it doesn’t cost too much. Breakfast is even included, which makes it even better value for money! 

This hotel is a great pick for short stays and overnight stops, especially if you’re road-tripping around the island and need an easy base. You can also sit and watch the planes come in as you sunbathe by the pool, which I think is pretty cool. 

Rooms generally start from around €90 per night.

If Hotel Solar Bom Jesus is fully booked, Santa Cruz Village Hotel is another convenient option close to the airport. It’s just a short walk from the seafront and has an outdoor swimming pool, a restaurant, and free parking, so it’s got everything you need for a comfortable stay.

Alternatively, Vila Galé Santa Cruz is worth considering if you fancy more of a resort experience. It’s right on the waterfront, with a large outdoor pool, two restaurants, and a spa, and it’s still only about five minutes from the airport by car.

Book your Airport Taxi in advance

Start your trip stress-free by booking your airport taxi before you arrive. You’ll skip the long lines, avoid overpriced fares and scams, and won’t have to worry about explaining your hotel address to a driver. Simply prebook your airport pickup online here, and your driver will be ready to take you directly to your hotel!

Top Activities to do in Madeira

Hannah at Cabo Girão Skywalk in Madeira, Portugal
Cabo Girão definitely tested my nerves
Hannah eating fruits on a food tour in Madeira, Portugal
Good food is always a great way to explore Madeira

Now that you’ve decided where to stay in Madeira, it’s time to plan some adventures! And trust me, there’s no shortage of things to do here. I spent my days exploring as much of the island as possible, and I still came home with a list of things I wanted to go back and do.

Here are five activities I’d recommend adding to your Madeira itinerary, including a few of my personal favorites!

  • Explore Madeira on a Jeep tour – I had SO much fun on this 4×4 Jeep tour! Our guide, Pedro, took us all over the north coast in his beloved Land Rover Defender, named Manu. We visited the Porto Moniz rock pools, Cabo Girão Skywalk, and the incredibly foggy Fanal Forest, which felt like something out of a ghost film!
  • See whales and dolphins – I went on this catamaran cruise and was lucky enough to see several groups of pilot whales! The water was so clear that we could even see them swimming beneath the boat, and we spotted a rare monk seal, too.
  • Go canyoning – If you fancy something a bit more adventurous, this canyoning tour looks like a lot of fun. You’ll get to explore Madeira’s rugged gorges, abseil down waterfalls, and slide into natural pools. It’s beginner-friendly, so you don’t need any previous canyoning experience.
  • Taste your way around Funchal – I absolutely loved this food and wine tour. Our guide, Mara, was born and raised in Madeira, and she taught us so much about the island while we sampled local wine, cheeses, seafood, and poncha. She also gave us some very useful advice about avoiding scams at the market!
  • Go on a sunrise hike – Watching the sunrise over Madeira’s mountains is one of the island’s most famous experiences, and this self-guided hike includes transport so you don’t have to tackle the mountain roads in the dark.

Related Read: Still looking for more ideas? Check out my best things to do in Madeira blog for more of my favorite experiences and tips from my trip!

Renting a Car in Europe

A coastal road winding through Mallorca, Spain

Exploring Europe by car is a fantastic way to uncover hidden gems—think charming villages, scenic countryside, and off-the-beaten-path spots that trains and buses might miss. Driving here is generally straightforward, but it’s good to be prepared for some regional quirks.

We always use Discover Cars to book our rentals and can’t recommend them enough. It’s super easy to compare prices, check company ratings, find automatic cars (which can be tricky in Europe!), and add affordable full coverage insurance. If you want a full breakdown, check out our Discover Cars review here.

Tips for Renting a Car in Europe

  • Know the local rules: Most countries drive on the right, except the UK, Ireland, Cyprus, and Malta. Road signs and driving laws can vary, so do a quick check before you go.
  • Practice defensive driving: In parts of Europe, especially in the south, driving can feel fast-paced and a little unpredictable. Make sure you stay alert and keep a safe following distance.
  • Insurance is essential: I highly recommend adding full coverage insurance to your rental. Whether it’s a parking lot ding or a chipped windshield on a mountain road, full protection gives you peace of mind. Plus, it’s super affordable through Discover Cars!
  • Pick the right vehicle: Most rentals in Europe are manual, and automatic cars are limited, so book early if that’s what you need. A compact car is also ideal for narrow roads and tight parking. On Discover Cars, you can easily filter for everything you need.
  • Watch for restricted zones: Many cities have low-emission or restricted traffic zones. Driving into these without a permit can result in fines, so always check local rules if you’re heading into a city center.
  • Be prepared for border crossings: While crossing borders is usually easy within the Schengen Zone, some rental companies require you to declare your travel plans in advance. Always check with Discover Cars if you’re planning to drive into another country.

What You Need to Rent a Car in Europe

  • A valid driver’s license from your home country.
  • If you’re from outside the EU, an International Driving Permit (IDP) is recommended—and in some countries, it’s legally required.
  • A credit card in the driver’s name is typically needed for the security deposit.
  • Most rental companies require drivers to be at least 21 years old. If you’re under 25, expect a young driver surcharge—and in some countries, the minimum age may be higher.

Ready to hit the road and discover the freedom of exploring Europe on your own terms?

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Thanks for reading!

Hannah passing by a colorful door in Madeira, Portugal
Thanks for reading!

I had such an amazing time in Madeira, and I hope this guide has helped you figure out where to stay! I was really surprised by how different each part of the island felt, and while I loved basing myself in Funchal, I can definitely see myself returning for a more relaxed stay somewhere along the coast.

Whether you’re planning to spend your days hiking, lounging by the pool, or eating your way around Funchal (a very respectable option, if you ask me!), I think you’re going to have a fantastic time here.

And if you’re planning more adventures, be sure to check out our other Europe travel guides. Here are a few more articles you might find useful. Happy travels!

How to Spend THREE DAYS in Faro, Portugal: The Best 3-Day Itinerary

Where to Stay in Porto, Portugal: 5 Best Areas & Hotels

Where to Stay in Lisbon, Portugal: 4 Best Areas & Hotels

The Best Douro Valley Tour from Porto – Our Honest Review

The Services We Recommend

From hotels to guided tours, we only recommend services we know and trust. Here are our recommended partners so you can explore with confidence.

Hannah has lived in Vietnam, South Africa, Bali, Argentina, and the UK. She’s passionate about authentic travel experiences and getting the most out of every destination, with some time to nap or chill by the pool along the way.

Learn more about Hannah

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