12 Best Hotels in Funchal: My Top Recommendations By Area and Budget
Once upon a time, three years ago, I sat down at my laptop and tapped in the best hotels in Funchal.
Fast forward to now, I’ve been to Madeira three times and spent well over 1 month staying in Funchal.
I’ve written a complete guide to where to stay in Funchal by neighbourhood – and stayed in more than one myself – so it’s finally time to sit down and share my favourite 12 Funchal hotels.
As Madeira’s capital city, Funchal gives you the beauty of choice. But that’s equally what can make it so hard to decide which hotel to stay in.
There are historic quinta hotels with leafy gardens and terracotta roofs, Old Town buildings with rooftop pools and even large seafront resorts.
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Quick Answer: What Are The Best Hotels in Funchal?
The best hotels in Funchal will depend on your budget and priorities.
Most luxury hotels in Funchal have a swimming pool (rooftop or otherwise), which is convenient because there aren’t any sandy beaches in Funchal
Budget hotels, however, tend to be more basic, without pools or restaurants.
For the most quintessential experience, I recommend staying at a quinta hotel (traditional manor houses).
- Best for first-time visitors: Barceló Funchal Oldtown
- Best budget hotel: Hotel Madeira
- Best luxury hotel: The Views Baia
- Best quinta hotel: Quinta da Casa Branca
- Best for beach access: Meliá Madeira Mare
These links will take you to a more detailed overview of each hotel.
Quick Area Guide To Help You Choose The best Hotel in Funchal
Before you browse the best hotels in Funchal, Madeira, you need a brief understanding of the city’s neighbourhoods and why they will or won’t suit you.
Below, I’ve summarised the essential information you need to know.
For a fuller breakdown, read my guide to where to stay in Funchal.
- Old Town (Zona Velha): The historic centre, packed with restaurants, bars and things to do. It’s the most convenient base, but accommodation is often cramped and pricey.
- Santa Luzia is a quieter, more affordable alternative just uphill from the Old Town. You’ll get better views and more space, but it can be hilly.
- Lido and São Martinho are modern beachfront neighbourhoods with large oceanfront hotels and resorts. It’s well-connected by bus but less characterful than the Old Town.
- São Pedro is a residential area with great views and good bus connections to both the Old Town and Lido. It’s hilly, but a solid mid-range option.
- Monte is set high above Funchal, known for the Monte Palace gardens and a cooler climate. It’s scenic but less convenient for day-to-day exploring.
Comparing The Best hotels in Funchal
| Hotel | Area | Price range | Best For |
|---|---|---|---|
| Barceló Funchal Oldtown | Old Town | €250–400 | Convenience and luxury |
| Hotel Madeira | Old Town | €105–140 | Affordable and central |
| Castanheiro Boutique Hotel | Old Town | €165–400 | Boutique hotel |
| Three House Hotel | Old Town | €180–800 | Modern rooftop pool and bar |
| TURIM Santa Maria Hotel | Santa Luzia | €250–335 | Views of the Old Town |
| Villa Quinta Torrinha Rooms | Santa Luzia | €322–465 | Traditional quinta hotel |
| Quinta da Casa Branca | Lido | €295–400 | Boutique quinta stay |
| Vila Baleira | Lido | €180–240 | Modern seafront resort |
| Meliá Madeira Mare | Lido | €200–400 | Beach access |
| The Views Baia | São Pedro | €200–380 | Adults-only resort |
| Quintinha Sao Joao Hotel & Spa | São Pedro | €260–300 | Colonial-style architecture |
| Quinta do Monte | Monte | €100–200 | Historic Monte hotel |
Final Quick Tips: How to Choose the Right Hotel in Funchal
- If you’re visiting Madeira without a car, I recommend staying at a hotel in either the Old Town or Santa Luzia. From these hotels, you can walk to restaurants, join tours and easily access public transport.
- If you want to swim, choose a hotel with a pool or stay in Lido or São Martinho, where you’ll be close to the sea and the Doca do Cavacas natural pools.
- For a short stay, base yourself at an Old Town hotel for maximum convenience. You’ll have everything on your doorstep.
- If you’re on a budget, look at smaller guesthouses on the outskirts of Funchal, or check out my guide to the best hostels in Madeira. My top recommendation is Santa Maria Hostel.
The 12 Best Hotels in Funchal for All Budgets, By Neighbourhood
What are The Best Hotels in Funchal Old Town (Zona Velha)?
1. Barceló Funchal Oldtown
Cost (per night): €250–400
Located in the centre of the Old Town, Barceló Funchal Oldtown is my top pick for convenience and luxury. It even has a rooftop pool, which is no small feat in the older, narrower part of the city.
Key highlights:
- Pool with a view
- Central location
2. Hotel Madeira
Cost (per night): €105–140
Hotel Madeira is in my favourite part of the Old Town, near my regular coffee shop Maia. Despite its central location and beautiful rooftop pool, it’s affordable with rooms going for as little as €105 per night.
Key highlights:
- Rooftop pool
- Restaurant with views
3. Castanheiro Boutique Hotel
Cost (per night): €165–400
Castanheiro Boutique Hotel is my favourite boutique hotel in the Old Town. It’s got a rooftop pool, a restaurant and bar, and a spa. The reviews speak for themselves; it has a 9.3/10 rating on Booking.com.
Key highlights:
- Bicycle hire
- Spa and sauna
4. Three House Hotel
Cost (per night): €180–800
I’m a regular at the rooftop bar and restaurant at Three House Hotel. This modern hotel is a popular date night spot even for non-guests. It’s right on the outskirts of the Old Town and one of the most spacious hotels in the area.
Key highlights:
- Classy rooftop bar and pool
- Featured on Mr & Mrs Smith
What Are The Best Hotels in Santa Luzia?
I love staying at hotels in Santa Luzia. The neighbourhood is right next to the Old Town, but with cheaper prices and better views. Just watch for the hills!
1. TURIM Santa Maria Hotel
Cost (per night): €250–335
This is the perfect Santa Luzia location, in my opinion. It’s not too hilly but you still get the views of the Old Town. TURIM Santa Maria Hotel also has a rooftop restaurant and pool.
Key highlights:
- Modern rooftop
- Good views and not too hilly
2. Villa Quinta Torrinha Rooms
Cost (per night): €322–465
This carefully restored historic home and garden has been transformed into a small boutique hotel called Villa Quinta Torrinha Rooms. Nothing good comes easy; the walk there is gently uphill, about 15–20 minutes from the Old Town.
Key highlights:
- Restored historic home
- Pool, steam room and hot tub
What Are The Best Hotels in Lido?
1. Quinta da Casa Branca
Cost (per night): €295–400
Every time I pass Quinta da Casa Branca, I get a glimpse of the leafy grounds and wish I had the budget to stay there. Listed as one of the best Small Luxury Hotels of The World, this boutique hotel is a coveted venue at a historic manor house.
Key highlights:
- Heated pool
- Subtropical plants and banana plantation
2. Vila Baleira Funchal
Cost (per night): €180–240
Vila Baleira is a modern resort well-connected by bus and taxi, between the Old Town and Formosa Beach. It has a large outdoor pool, ocean views and family-friendly rooms, making it a good option for family holidays.
Key highlights:
- Breakfast buffet
- Ocean views
3. Meliá Madeira Mare
Cost (per night): €200–400
Located in Lido, Meliá Madeira Mare is another large seafront resort. You can go swimming directly in front of the hotel and easily take the bus into the Old Town. A pool and spa are on the site.
Key highlights:
- Direct access to the ocean
- Pool and spa
What Are The Best Hotels in São Pedro?
1. The Views Baia
Cost (per night): €200–380
Onto São Pedro, a hilly neighbourhood home to the popular hotel, The Views Baia. The name’s a dead giveaway: it’s so scenic, with views over the city. But it’s also adults-only, so no need to worry about noisy kids running around.
Key highlights:
- Adults-only
- Pool, gym and spa
2. Quintinha Sao Joao Hotel & Spa
Cost (per night): €260–300
Quintinha Sao Joao Hotel & Spa is a five-star quinta hotel in São Pedro, worth the short uphill walk from the Old Town. It has elegant gardens, colonial-style architecture and views of Funchal bay.
Key highlights:
- Pools, spa and gym
- Beautiful garden
What’s The Best Hotel in monte?
1. Quinta do Monte
Cost (per night): €100–200
If you’re considering staying in Monte, the peaceful neighbourhood accessible by bus or cable car from Funchal, my top recommendation is Quinta do Monte. It’s a one-of-a-kind hotel where Madeira’s royalty used to go on holiday.
Key highlights:
- Spa, garden and restaurant
- Rooms with balconies
Thanks for using my guide to the best hotels in Funchal. I hope you love the city – and the island – as much as I do!
If you’re still planning your trip, you may want to check out my Madeira travel tips before you go or browse the best things to do in Funchal.
