Where to stay in Madeira: the best areas & hotels for every traveller

Choosing where to stay in Madeira can shape your entire trip.

The island looks pretty compact on the map – perhaps slightly over one hour to to the other side of the island – but the landscapes and weather change quickly. Plus, travellers are visiting Madeira for more reasons than ever before so it’s all about the type of trip you want.

Where to stay in Madeira for every type of traveller

Do you want sunset swims, slow mornings or buzzy restaurants on your doorstep? Choosing a base that fits the bill can be the difference between a good trip and a great one.

With that in mind, I’m sharing the top locations gathered by my family and I on our many trips to Madeira. Backed by insider knowledge (thanks to my parents and cousins!), this guide will help you choose where to stay in Madeira with confidence.

A quick look at where to stay in Madeira

My best advice is to choose the best place to stay in Madeira for you: everyone will be looking for a different kind of vibe for their home base. Here’s a summary before we dive into each location below.

Calheta: Boasting one of Madeira’s few sandy beaches, Calheta is great for resort-style stays
Caniçal: Right on the island’s East coast, Caniçal is a quiet fishing village boasting a nearby resort village
Curral das Freiras (Nun’s Valley): Remote and dramatic scenery perfect for hikers
Funchal: Madeira’s capital is best for first-timers and public transport if you don’t want to hire a car
Machico: Ideal for beaches, east-coast hikes and easy airport access – my personal favourite
Ponta do Sol: A relaxed south-coast base village well known for its sunny microclimate
Porto da Cruz: Perfect for surf school escapes next to the crashing waves
Santana: A much-visited village famous for Madeira’s famous traditional houses
Santa Cruz: Close to the airport, this charming village is one of Madeira’s oldest settlements

You’ll find personal hotel recommendations for each area below or this handy map will take you straight to my picks for your desired location!

Can’t decide? Pick one of the larger bases to start your trip, then book a couple of nights in a smaller village to vary your experience!

Where to stay in Calheta

Calheta feels noticeably more resort-like than much of Madeira. With one of the island’s rare sandy beaches and a calmer sun-soaked atmosphere, it can be a great spot to seek out when the rest of the island is under cloud!

If you have a car and plan to explore Madeira’s west coast, or want a slower pace without feeling too remote, Calheta is a great option.

Saccharum Resort, Savoy Signature

Address: Rua Serra de Água, 1, 9370-077 Calheta, Madeira
Rooms available: Pool, courtyard or ocean view rooms & suites
Cost: £££ – a luxury escape

A design-led hotel by Savoy, Saccharum Resort suits travellers who enjoy a resort atmosphere but want to explore beyond the hotel grounds. Highlights are the infinity pool and beach club that give Saccharum Resort that real luxury feel.

Calheta Lofts

Address: Marina da Quinta Grande, 9200-044 Caniçal
Rooms available: Hotel rooms & suites, one with direct pool access
Cost: ££

Just a few hundred metres from the beach, Calheta Lofts is ideal a for a more independent getaway. You’ll enjoy mountain views, free parking – ideal if you’ve hired a car – and a fully equipped kitchen.

Where to stay in Caniçal

A quiet, coastal and low-key area, Caniçal is a historic fishing port great for raw landscapes and watching the sun rise. There are some restaurants and swimming areas frequented by locals, giving the area a more authentic feel, but it’s also a great option if hiking the eastern tip of Madeira is high on your itinerary.

If hiking the eastern tip of Madeira is high on your itinerary, this is a great option.

Check out my PR8 hiking guide: Vereda da Ponta de São Lourenço

Dreams Madeira Resort, Spa & Marina

Address: Marina da Quinta Grande, 9200-044 Caniçal
Rooms available: Hotel rooms & suites, one with direct pool access
Cost: £££ – but it’s all inclusive!

Dreams Madeira Resort, Spa & Marina brings your classic all inclusive experience for families who want everything in one convenient place. If you aren’t hiring a car, it’s a little more out of the way, but you could have a gorgeous stay here without feeling cooped up.

Some of my extended family stayed here and raved about the variety of restaurants, gardens and pools on site.

Where to stay in Curral das Freiras (Nun’s Valley)

Staying inland in Madeira is like a completely different world: cloud cover rolls in quickly, temperatures can rise and fall but the landscapes are always dramatic. Best for travellers who prioritise scenery over convenient amenities, it’s definitely a memorable place to stay but one I’d choose for a night or two, rather than a longer stay.

Valley View Hotel Encumeada

Address: Feiteiras – Serra D’Água, 9350-000 Senhora do Rosário
Rooms available: Double or twin rooms
Cost: ££

Sitting high in the mountains, Valley View Hotel has basic rooms but the view from your balcony by far make up for it. Waking up here, you’ll feel wonderfully removed from the rest of the island and ready for a spectacular hiking adventure.

Where to stay in Funchal

An easy choice for first-time visitors or those who want convenient, city amenities within easy reach. There’s by far the most restaurants and public transport, but paired with the traditional look that gives Madeira its charm. Spending at least a few nights here before you head out to explore the island can help you settle in.

While I haven’t included the iconic Reid’s Palace in this accommodation guide, I’d highly recommend paying it a visit. I’ve written a whole blog post about the most common way most people experience the famous hotel; afternoon tea at Reid’s Palace on the terrace overlooking the ocean.

Savoy Palace

Address: Avenida do Infante, 25, 9004-542 Funchal
Rooms available: Ocean, garden and avenue view rooms, and ocean view suites
Cost: £££

There are three Savoy hotels in Funchal alone, but the Savoy Palace is up there with the best. It’s more modern than the traditional luxury of the Royal Savoy, and while I haven’t stayed there myself, I was lucky enough to enjoy a pool day when one of my cousins was staying earlier this year. The facilities are undoubtedly gorgeous, with huge cabanas and poolside sunbeds, a tranquil spa, rooftop pool and a great choice of cuisine. If you’re a couple or family looking for a treat, this is a great one to consider.

Allegro Madeira

Address: Rua do Gorgulho, 1, 9000-107 Funchal
Rooms available: Hotel rooms & suites
Cost: ££

Admittedly Allegro Madeira doesn’t look like much from the outside, but after being recently renovated, the facilities are modern, comfortable and well-thought out. Despite the unassuming exterior, its in a great location just a few minutes from the promenade and provides parking – a real selling point if you’re staying in Funchal where it can be more difficult!

Pier House Accommodation

Address: Avenida do Mar e das Comunidades Madeirenses, Funchal
Rooms available: Guesthouse-style studios
Cost: ££

The location is the real selling point for Pier House Accommodation, particularly if you’re looking for where to stay in Madeira during New Year. Right in the heart of Funchal, it’s an affordable base for those who want to be in easy reach of exploration.

Apartamentos Santa Maria

Address: Rua de Santa Maria, Funchal Old Town
Rooms available: Self-catering apartments
Cost: ££

If you’d prefer to stay in Funchal’s Old Town, try Apartamentos Santa Maria. The apartments are ideal if you want an independent space with a kitchen option for breakfast – although you have plenty of restaurants in walking distance too!

Where to stay in Machico

It’s our home base so I’m completely biased but while it’s increasing in popularity, I believe Machico has always been overlooked as a great place to stay in Madeira. You’ve got a (manmade) sandy beach in a sheltered bay that makes it perfect for swimming, easy airport access and enough tasty restaurants to easily enjoy for a week – but the latter is another post in itself!

White Waters H o tel

Address: Rua Dr. José António de Almeida, Machico
Rooms available: Double or twin hotel rooms
Cost: ££

A super convenient base for first-time visitors to Machico, the White Waters hotel rooms are compact but modern, with walk-in showers, balconies and free breakfast. Be careful about when you book: it can get noisy if there’s a festival on in Machico, as it’s so close to the action, but at other times of year (or with good earplugs), this is a great pick!

Dom Pedro

Address: Estrada De São Roque, 9200-126 Machico
Rooms available: Double or twin hotel rooms
Cost: ££

If you’re a family staying in Machico, the Dom Pedro is the town’s biggest hotel and therefore a popular choice, especially if you’re looking for classic hotel amenities like a pool. If not, I wouldn’t necessarily recommend it over an apartment and the food isn’t amazing – there are way better options available in the town.

The Village House

Address: Rua Conselheiro José Ribeiro da Cunha 20, 9200-089 Machico
Rooms available: Studio apartment
Cost: £

I stayed at The Village House earlier this year and it made a super convenient base for our week-long stay, as you’re just five minutes from the beach and even closer to great cafes and restaurants. There were a couple of downsides – mainly the noise from cars driving down the cobbled road at night and the small bathroom – but for the price, we were happy! It’s great for solo travellers and couples: any more people and you’d struggle for personal space.

Where to stay in Ponta do Sol

One of the sunniest spots on the island, Ponta do Sol is great if catching rays is high on the agenda when choosing where to stay in Madeira. It’s chilled out, compact and perfect for slower days relaxing in between exploring the island.

Estalagem da Ponda do Sol

Address: Quinta da Rochinha n6, 9360-529 Ponta do Sol
Rooms available: Garden rooms
Cost: ££

Estalagem da Ponda do Sol is small, quiet but with unbelievable views that make it perfect for a relaxed couples retreat. While the whole property is beautiful and design-focused, the stunning infinity pool is the real selling point.

Where to stay in Porto da Cruz

Porto da Cruz is somewhere I’ve only ever stopped at for an hour or two, but there’s a very distinct appeal to a certain type of traveller. The village is well-known for being a surf hotspot, with waves crashing against black sand and dramatic cliffs that look particularly moody in the low cloud.

Madeira Surf Camp

Address: Rua da Piedade nº4, 9225-050, Porto da Cruz
Rooms available: Four twin/double rooms and a four bed bunk room
Cost: £

A guesthouse in the heart of Porto da Cruz with a kitchen, living area and small number of bedrooms, Madeira Surf Camp by nature caters to those searching for the perfect wave. You can book three, five or seven night experiences that come with surf lessons included.

This is my only recommendation as it’s not my top pick if you asked me where to stay in Madeira. It lovely for a short visit, but not much to do if you aren’t surfing daily.

Where to stay in Santana

If you want to feel rooted in tradition, Santana’s famous thatched houses and rugged coastline may be for you. It’s not far from the aforementioned Porto da Cruz, but makes a slightly more lively base if you’re after a north coast stay.

Santana is cooler, greener and wilder than the south coast, making it a brilliant base for walkers in search of dramatic scenery: the walks to Madeira’s highest peaks are all accessible from around this area.

Read my full guide to Madeira’s PR1 hike: Pico do Arierio to Pico Ruivo

Hiking Madeira stairway to heaven in clouds

Quinta do Furão

Address: Estrada da Quinta do Furão Nº6, 9230-082 Santana
Rooms available: Twin and double hotel rooms
Cost: ££

Quinta do Furão boasts colonial-style interiors and a gorgeous garden and pool area surrounded by agapanthus and grapevines. The on-site restaurant is one of the best we’ve tried in a Madeira hotel with an amazing breakfast and utterly spectacular views. If you’re looking for some where to stay in Madeira that’s a little different, this is an unexpectedly gorgeous find without a super high price tag.

Where to stay in Santa Cruz

While Santa Cruz may seem like a convenient pit-stop close to the airport, it’s a super pretty village that’s worth considering. Sure, there’s easy airport access, but you can also get to the relaxed seafront and enjoy some tasty restaurants too. It’s around 20 minutes drive to Funchal and five minutes to Machico, making it perfectly placed to visit a few different areas of Madeira.

Albatroz Beach & Yacht Club

Address: Quinta Dr. Americo Durao Sitio Da Terca, 9100-187 Santa Cruz
Rooms available: Sea view rooms and suites
Cost: £££

Located right near the airport, Albatroz Beach & Yacht Club is a five-star property where every room has a balcony to enjoy the south coast’s sea views. With three pools – one heated at hotel level, two at sea level – a restaurant and excellent service, it’s an ideal escape that can be as secluded as you like.

Where to stay in Madeira: the best areas & hotels for every traveller