Where to Stay in Funchal: My Selection of the Best Accommodations

Wondering where to stay in Funchal? Looking for the best areas and districts?

You’re at the right place!

As I know Funchal very well, I have created this guide of:

• Funchal’s best areas for your stay (with details about the best places to visit and nearby attractions)
• For each area and district, the best hotels depending on your budget

Let’s find your dream hotel now!

My favorite hotels in Funchal

Here’s a quick summary of my favorite hotels in Funchal, in case you don’t have time to read my detailed article.

Simply click on the hotel names in orange to access details and rates:

• Where to stay in Funchal for the first time: Sé Boutique Hotel, with a beautiful rooftop bar or TURIM Santa Maria Hotel
• Best 5-star hotel in Funchal: Belmond Reid’s Palace, an iconic cliffside hotel.
• Where to stay in Funchal on a budget: 29 Madeira Hostel
• Where to stay in Funchal with family: Pestana Carlton Madeira Ocean Resort Hotel
• Where to stay in Funchal for a romantic getaway: Quinta Jardins do Lago, a luxurious manor house.

In Funchal’s Old Town (Zona Velha)

The Old Town of Funchal, or Zona Velha, is the historic soul of Madeira’s capital.

This charming district is famous for its narrow cobbled streets and traditional architecture.

It’s the best area to stay if you want to immerse yourself in local culture and enjoy authentic cuisine.

You should stay in this district if you want:

• To be in the heart of Funchal’s history
• To easily explore the main attractions on foot.
• To enjoy the city’s best restaurants and traditional taverns.

This is the perfect area to see:

• Mercado dos Lavradores, the famous farmers’ market with exotic flowers and tropical fruits.
• Rua de Santa Maria, known for its painted doors.
• Funchal Cathedral (Sé), showing some 15th-century architecture.
• The Funchal Cable Car, which takes you up to the Monte district.
• Forte de São Tiago, a historic yellow fort now housing a contemporary art museum.

Where to Stay in Funchal’s Old Town?

• Santa Maria Hostel: Don’t let the name fool you; this spot offers stylish and modern studios in the heart of Rua de Santa Maria. Studios start at 100€, with breakfast included. Strong points: perfect location, excellent design, great atmosphere.
• Sé Boutique Hotel: Located right next to the cathedral. Modern and chic double rooms from 150€, breakfast included. Strong points: amazing rooftop bar with 360° views, central location, friendly staff. This is the perfect choice for a first-time stay in Funchal.
• TURIM Santa Maria Hotel: Located a 5-minute walk from the fort. Modern and spacious double room with large bay windows from €160, breakfast included. Plus points: the swimming pool, the location, very warm welcome.
• Castanheiro Boutique Hotel: An elegant hotel blending five historic buildings. Spacious double rooms from 220€, breakfast included. Strong points: stunning rooftop infinity pool, an excellent spa, and high-quality service.
• The Vine Hotel: A 5-star design hotel located in the city center. Luxurious rooms with a bold, modern design starting at 280€, breakfast included. Strong points: rooftop pool with incredible views, a world-class spa, and a gourmet restaurant. My top choice for modern luxury in the heart of Funchal!

In the Lido Area (São Martinho)

The Lido district, centered around the parish of São Martinho, is Funchal’s main tourist hub.

Staying in the Lido area allows you to enjoy the sun and sea while being just a short bus ride or a pleasant walk from the Old Town.

You should really stay in the Lido area if you want:

• To have direct access to the sea.
• A wide choice of hotels with pools and fantastic ocean views.
• To be in a lively area with plenty of bars, shops, and restaurants.
• For a family holiday with lots of activities nearby.

This district is perfect for discovering:

• Promenade do Lido, a beautiful coastal path.
• Lido Bathing Complex, a famous public space with large saltwater swimming pools and direct access to the ocean.
• Praia Formosa, the largest public beach on Madeira, with its black volcanic pebbles.
• Doca do Cavacas, small natural volcanic pools.
• Plenty of restaurants offering local Madeiran specialties and international dishes.

Here are my favorite hotels in the Lido district

• Hotel Baia Azul: A recently renovated 4-star hotel with fantastic sea views. Modern double rooms from 140€, breakfast included. Strong points: beautiful indoor and outdoor pools, great value for money, friendly staff.
• Pestana Carlton Madeira Ocean Resort Hotel: A large 5-star resort with extensive grounds. Spacious rooms from 190€, with breakfast included. Strong points: two huge swimming pools, direct sea access, great facilities for families.
• The Cliff Bay – PortoBay: A stunning 5-star hotel perched on a cliff. Elegant rooms from 350€, breakfast included. Strong points: direct sea access, a 2-Michelin-starred restaurant (Il Gallo d’Oro), and multiple pools.
• Belmond Reid’s Palace: This legendary 5-star hotel has been welcoming guests for over a century. Timeless, elegant rooms starting at 550€, breakfast included. Strong points: exceptional service, lush subtropical gardens, three swimming pools, and an unmatched air of classic luxury. This is simply the best luxury hotel in Funchal!

In Monte District

Monte is a charming area nestled in the hills overlooking Funchal.

It’s famous for its lush gardens and spectacular views of the bay.

You can stay in Monte:

• If you want a quiet and romantic holiday with breathtaking views.
• For a relaxing vacation surrounded by nature and beautiful gardens.

Best things to do and see around Monte:

• Monte Palace Tropical Garden, one of the most beautiful botanical gardens in the world, featuring exotic plants and an oriental-style palace.
• Madeira Botanical Garden, another stunning garden accessible by a second cable car from Monte.
• The Church of Our Lady of Monte, an 18th-century church that is an important pilgrimage site.
• The famous Monte Toboggans, where you can ride down the steep streets in a traditional wicker sled guided by two ‘carreiros’. A must-do experience!

The Best Hotels to Stay in Monte

• Babosas Village: Located right next to the cable car station. Charming and spacious apartments with balconies from 145€. Strong points: incredible views, great location for exploring Monte, self-catering facilities.
• Quinta do Monte Panoramic Gardens: A historic hotel set in a beautiful manor house. Classic double rooms from 160€, breakfast included. Strong points: heated indoor pool, peaceful garden setting, historic charm.
• Quinta Jardins do Lago: A stunning 5-star hotel set in an 18th-century manor. Elegant double rooms surrounded by botanical gardens from 280€, breakfast included. Strong points: magnificent gardens with rare plants, a large swimming pool, exceptional service, and a very romantic atmosphere. This is my recommendation for a luxury romantic stay in Funchal!

Where to Stay in Funchal on a Budget

If you’re traveling on a budget, here are a few great hotels for a stay in Funchal without spending too much:

• 29 Madeira Hostel: An hostel located in the city center. Double rooms from 75€, breakfast included. Strong points: very clean, excellent location, great communal areas. This is a fantastic choice for staying in Funchal for cheap.
• FX Pena: A highly-rated guesthouse just a 10-minute walk from the Old Town. Clean and simple double rooms from 85€. Strong points: very helpful owner, quiet location, excellent value.
• Apartamentos Turísticos Atlântida: Located in the Sé district offering spacious studios and apartments, some with a private balcony. Starting at 100€ per night, breakfast 8.5€. Strong points: unbeatable location by the cathedral, kitchenettes, daily housekeeping.

Where to Stay in Funchal with Family

• Pestana Carlton Madeira Ocean Resort Hotel: Located in the Lido area. This resort offers spacious family rooms and suites from around 200€. Strong points: huge swimming pools, kids’ club, direct sea access, and plenty of activities. This is an ideal choice for a family holiday in Funchal.
• Vila Baleira Funchal: Also in the Lido area. Offers family rooms and has both indoor and outdoor pools. Rooms start from 130€. Strong points: good value, great pool facilities, close to restaurants and shops.
• Meliá Madeira Mare: A modern 5-star hotel in the Lido with excellent facilities. Family rooms are available from 250€. Strong points: large lagoon-style pool, spa for the parents, close to the promenade.

What is the best hotel in Funchal?

If you are looking for the best hotel in Funchal, I recommend you the Belmond Reid’s Palace.

And if you’re looking for something a little more affordable but still luxurious, you should book a night or more at The Cliff Bay – PortoBay.

Where to stay in Funchal: The best hotels

To give you a better overview of the best hotels in Funchal, whether in the city center or elsewhere, I’ve prepared a table summarizing all the ones I talk about in this article.

You can sort them by price or by district!

Hotel	District	Price (from)
Santa Maria Hostel	Old Town (Zona Velha)	100€
Sé Boutique Hotel	Old Town (Zona Velha)	150€
TURIM Santa Maria Hotel	Old Town (Zona Velha)	160€
Castanheiro Boutique Hotel	Old Town (Zona Velha)	220€
The Vine Hotel	Old Town (Zona Velha)	280€
Hotel Baia Azul	Lido (São Martinho)	140€
Pestana Carlton Madeira Ocean Resort Hotel	Lido (São Martinho)	190€
The Cliff Bay - PortoBay	Lido (São Martinho)	350€
Belmond Reid's Palace	Lido (São Martinho)	550€
Babosas Village	Monte	145€
Quinta do Monte Panoramic Gardens	Monte	160€
Quinta Jardins do Lago	Monte	280€
29 Madeira Hostel	Cheap Hotels	75€
FX Pena	Cheap Hotels	85€
Apartamentos Turísticos Atlântida	Cheap Hotels	100€
Vila Baleira Funchal	Hotels for Families	130€
Pestana Carlton Madeira Ocean Resort Hotel	Hotels for Families	200€
Meliá Madeira Mare	Hotels for Families	250€