Trip guides / Islands
Where to Stay in Madeira: Best Areas and Hotels
Where you stay in Madeira makes a big difference: Funchal for restaurants and convenience, the sunny southwest for the beach and sunsets, or the green north for walking and wild scenery. Here’s how to choose where to stay in Madeira, area by area.
Quick answer: first-timers should stay in Funchal (the Lido area for pools and sea views, the old town for restaurants). For more sun and the sandy beach, stay in Calheta or Ponta do Sol. For hiking and nature, the north coast around Santana or Porto Moniz. With a car, you can reach anywhere on the island in about an hour.

Funchal
The capital, with the most hotels, restaurants and tours, and buses and cable cars to the hills.
- The Lido and hotel zone: big hotels with pools and sea views, the seafront promenade and seawater pools. Try Savoy Palace, Pestana Promenade or Les Suites at The Cliff Bay.
- The old town and centre: walk to the market, the Zona Velha and the cable car. Try Castanheiro Boutique Hotel, The Vine or the budget Hotel Madeira.
- Above the bay: classic grand hotels and quintas with gardens, like Reid’s Palace and Quinta da Casa Branca.
Browse all Funchal stays · things to do in Funchal.
The southwest: Calheta and Ponta do Sol
The sunniest part of the island, with Madeira’s sheltered sandy beach at Calheta and beautiful sunsets. Quieter than Funchal, and great for families and couples.
- Savoy Calheta Beach: all-inclusive on the beach.
- Socalco Nature: farm-to-table villas.
- Estalagem da Ponta do Sol: a clifftop design hotel.
Calheta stays · Ponta do Sol stays.
The north coast
Wild, green and dramatic, with waterfalls, laurel forests and the natural pools of Porto Moniz. Cooler and wetter, but perfect for walkers.
- Aqua Natura (Porto Moniz): next to the lava pools.
- Quinta do Furão (Santana): a clifftop wine estate.
The east: Machico and Caniçal
Close to the airport, with Machico’s golden beach and the wild Ponta de São Lourenço peninsula nearby. Handy for short stays.
How to choose
- No car? Stay in Funchal, where buses and tours start.
- Hiking trip? Funchal or the north, with a car. See levada walks.
- Families: Funchal’s Lido or Calheta. See Madeira with kids.
- Winter sun: the south coast is warmest.
More: the best hotels in Madeira, the Madeira itinerary and all Madeira stays.
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