Funchal is where most Madeira trips are based, and for good reason: it's central, walkable, and where nearly every island tour picks up. The hotels span every tier and corner of the city – clifftop 5-stars, old-town boutiques, Lido family resorts and value city stays – so the real question is your area and budget, not whether to stay here. If you want the short version, browse hotels in Funchal and book early. Below are six that cover the range, plus how to pick.
| Hotel | Score | From/night | Area | Best for | |
|---|---|---|---|---|---|
| Savoy PalaceReview ↓ | 9.1 | €300 | Funchal | Luxury, rooftop | Check price → |
| The Vine HotelReview ↓ | 8.9 | €220 | Funchal | Design, central | Check price → |
| Hotel Porto Santa MariaReview ↓ | 8.9 | €170 | Funchal | Old town, adults | Check price → |
| Castanheiro BoutiqueReview ↓ | 8.8 | €180 | Funchal | Boutique | Check price → |
| PortoBay Porto MareReview ↓ | 8.8 | €160 | Funchal | Family, gardens | Check price → |
| Hotel do CarmoReview ↓ | 8.1 | €90 | Funchal | Value, central | Check price → |
- 01Funchal is the default base for most visitors – central, walkable and where almost every island tour picks up, so you stay put and let day trips come to you.
- 02It covers every tier and area: clifftop luxury, central design hotels, old-town boutiques, Lido seafront resorts and budget city stays.
- 03There are no beaches – the appeal is sea views, pools and sea-water bathing, plus a walkable historic centre and marina.
- 04Pick your micro-area: the old town for atmosphere and dining, the Lido for the seafront and pools, the centre for walkability – and note the city is steep.
- 05Spring and autumn fill up, so book early; scores and prices are indicative – always check your dates.
Savoy Palace
The city's modern luxury statement, on the seafront – a wave-shaped tower with a rooftop infinity pool and sky bar, a big spa and several restaurants. It's the flashiest stay in Funchal and the pick for a contemporary, amenity-loaded 5-star with the best rooftop views in town. Check Savoy Palace rates.
The Vine
A design hotel right in the centre, themed around the island's wine, with a rooftop pool and bar looking over the city and sea. The draw is the central, walkable position – step straight out into the old town and the market – paired with smart, contemporary rooms. Best for style plus a base you can explore on foot. Check The Vine rates.
Hotel Porto Santa Maria
An adults-only PortoBay hotel on the edge of the old town, by the marina and the cable car – arguably the best location in the city. Sea-view rooms, a rooftop pool and direct sea access, with the Zona Velha's lanes and restaurants on the doorstep. The pick for a calm, grown-up stay in the heart of things. Check Hotel Porto Santa Maria rates.
Castanheiro Boutique
A boutique hotel in the historic centre, blending restored heritage buildings with modern design and a small rooftop pool and bar. It's intimate and characterful – a contrast to the big seafront resorts – and walkable to everything in the old town. Best for couples who want design and atmosphere over resort facilities. Check Castanheiro Boutique rates.
PortoBay Porto Mare
A relaxed family-friendly resort in the Lido area, sharing lush subtropical gardens and pools with its sister hotels, near the seafront promenade and sea pools. It's leafy, well-run and has space for children, making it a strong family base. Check PortoBay Porto Mare rates.
Hotel do Carmo
The value pick – a long-running, central city hotel a short walk from the old town and the seafront, with a small rooftop pool and honest, comfortable rooms at a budget-friendly rate. It won't wow on facilities, but it's a well-placed, affordable base for exploring Funchal on foot. Check Hotel do Carmo rates.
How to choose your area in Funchal
The city climbs a steep hillside, so where you stay shapes the trip. The old town (Zona Velha) is best for atmosphere, dining and walkability; the Lido area, west of the centre, is the seafront-and-pools zone where the resorts cluster; and the central streets put you closest to the market and shops. None of it is beachfront – Funchal trades on sea views and sea-water bathing.
For the bigger picture across the island, see our where to stay in Madeira guide, and the type-by-type round-ups for luxury, boutique, adults-only, family and all-inclusive stays. Whatever you pick, Funchal is the base from which the tours and day trips all run.
Featured image: H. Zell / Wikimedia Commons / CC BY-SA 3.0
