Madeira is an autonomous region of Portugal and is often referred to as “The Pearl of the Atlantic”. The archipelago consists of four islands, with Madeira Island being the largest and located off the coast of Morocco.
The volcanic island has a very unique landscape and is unlike anything you may have seen before in Europe. Despite being only a two-hour flight away from Lisbon, I felt more like I was in Hawaii than in Portugal!
If you are planning your trip right now, then you are probably just trying to figure out what to do and where to stay in Madeira.
One of the best ways to explore the waterfalls, high cliffs, and golden sand beaches of Madeira is by staying in one of my favorite areas or hotels.
The best towns to stay in Madeira
Madeira might not be the largest island, but it is full of picturesque towns that offer a unique experience no matter what you are looking for.
If you're visiting Madeira Island for the first time or with your partner and won't be renting a car, it's best to stay in Funchal, where you will also find the famous Lido Promenade.
If you're traveling with family, on the other hand, or looking to be close to the airport, Santa Cruz is a good option. Those looking for a quieter and more authentic experience should consider staying in Machico or Ribeira Brava. However, if outdoor activities such as hiking interest you, then Calheta and São Vicente are worth exploring.
1. Where to stay in Madeira for the first time & without a car: Old Funchal
Funchal is the capital city of Madeira Island and is the largest city in the archipelago. It is located on the South Coast and a great place to stay if you want to experience Madeira without renting a car, as most attractions are within walking distance from there.
I recommend spending a few days in Funchal regardless of what you plan for the rest of your time in Madeira. This town is backed by hills and has a bustling harbor, making it the busiest town on the island. With all its restaurants, bars, and markets, there is always something going on, and it is super easy to get around.
Best area for:
First-timers
Solo travelers
Things to see & do in Funchal
From the stunning old town and gardens to the famous Monte Cable Car, Funchal has plenty of options to keep you busy. Visiting Blandy's Wine Lodge is one of my personal favorites. They are offering a great tasting of different Madeira wines and a tour of their beautiful cellar.
If you're more into outdoor activities, you should check out some of the gardens. The Monte Palace Tropical Garden and the Botanical Garden of Funchal are both great for an afternoon stroll among tropical plants and flowers.
Best hotels to stay in Funchal
($$$) Pestana CR7 Funchal
Pestana CR7 Funchal is the perfect, luxurious stay for travelers visiting Madeira Island. With its open-plan lobby, sleek furniture, and outdoor swimming pool, the hotel is one of the best places to stay in Madeira.
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($$) TURIM Santa Maria Hotel
The Turim Santa Maria Hotel is my favorite mid-range hotel in Funchal. It's conveniently located close enough to the city center, allowing you to easily explore the sights and attractions such as the Lido Promenade, Monte Cable Car, or any of the various gardens.
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($) Hotel Catedral
If you're looking for an affordable option, the Hotel Catedral is a great pick. It's close to all the main attractions and offers basic yet comfortable rooms.
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2. Where to stay in Madeira for couples & luxury: Lido Promenade
The Lido Promenade is a seaside walk in Funchal that is perfect for couples looking for a romantic getaway.
With its sandy beach and stunning sunsets right by the hotel zone, this promenade offers an amazing view of the Atlantic Ocean.
It is home to some of the best luxury hotels, restaurants, and boutiques in Madeira, making it the best area to stay in Funchal.
Best area for:
Couples
Honeymoons
Shopping
Things to see & do along Lido Promenade
Along the Lido Promenade, you will find plenty to stay busy during the day. You can go shopping at the Forum Madeira or what I love doing is going for a swim at Ponta Gorda Lido, the popular seaside swimming pool.
If you want a romantic evening, my suggestion is to go to the Lido Promenade to watch the sunset. After that, if you're in the mood for Italian food, give Restaurant ll Basilico a try. Their pizza is definitely the best on the island!
Best hotels to stay along Lido Promenade
($$$) The Cliff Bay
The Cliff Bay is the best place to stay in Madeira for couples. Located right on the Lido Promenade, this beautiful hotel offers an indoor and outdoor pool and a two-star Michelin restaurant. It is definitely one of the best 5 star hotels in Madeira.
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($$) Hotel Porto Mare
Hotel Porto Mare is the perfect mid-range hotel option for couples looking for a luxurious stay in Madeira Island. It is located right on the Lido Promenade, with its own tropical garden and several restaurants.
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($) Allegro Madeira
The Allegro Madeira is another affordable option located near the Lido Promenade. It offers modern rooms and a great swimming pool, making it a perfect pick if you want to be close to the action without breaking your budget.
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3. Where to stay in Madeira for Spanish character & golden sand beaches: Machico
If you're looking to get a more authentic experience in Madeira, then Machico is the perfect place for you. It is located on the east coast of Madeira and is one of the oldest towns on this beautiful island. It has quite a Spanish feel to it with its narrow cobblestone streets and quaint little old town.
It is much quieter here and less touristy than in Funchal, making it great to escape the hustle and bustle and enjoy the golden-sand beaches in the area.
Best area for:
Relaxation
Seclusion
Beach days
Things to see & do in Machico
Once you're in Machico, make sure to check out the Miradouro de Portela, which is a great viewpoint to hike up to and enjoy the stunning views of the bay.
Also, one of the highlights here is Praia da Machico – the golden-sand beach. It's never too busy, which makes it one of my favorite beaches in Machico.
Best hotels to stay in Machico
($$$) Quinta Da Cova Do Milho
The Quinta Da Cova Do Milho is an amazing luxury hotel. It is set in the beautiful countryside of Machico, within walking distance of the golf course and the horse riding center.
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($$) Quinta Santo Antonio Da Serra
At Quinta Santo Antonio da Serra, you can enjoy spacious apartments and a large garden surrounding the house. Although it is situated further inland, it is easily accessible by public transportation to the beach.
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($) Machim D'Arfet House
The Machim D'Arfet House is the perfect budget-friendly option for travelers looking to explore Machico. It is a traditional house that offers comfortable rooms and easy access to the beach.
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4. Where to stay in Madeira for families with kids: Santa Cruz
Santa Cruz is a great place to stay in Madeira for families. It is a very small and calm village located close to the airport, so it's quite convenient if you're looking to catch an early flight or don't want to travel far after landing on the island.
Santa Cruz has a pebble beach called Praia das Palmeiras, which is known for its seafront promenade lined with palm trees and local restaurants. In case you find Santa Cruz too calm, you can always take a short drive to bigger towns like Funchal or Machico, which would be ideal for a day trip.
Best area for:
Families
Relaxation
Catching flights & short travel time
Things to see & do in Santa Cruz
The main attraction in Santa Cruz is definitely the Praia das Palmeiras. Apart from that, there are many great restaurants, such as Taberna de Petisco, where you can try traditional seafood. There's also a small beachside park and playground at the end of the promenade, which is perfect for kids.
Other than that, I would recommend checking out Praia dos Reis Magos, which is a great beach for snorkeling and scuba diving. Madeira Oceanos is a local dive shop offering courses in English, Portuguese, and German.
Best hotels to stay in Santa Cruz
($$$) Albatroz Beach & Yacht Club
The Albatroz Beach & Yacht Club is a great mid-range option for families with kids. It is located right beside the Praia das Palmeiras and has its own spa, as well as outdoor swimming pools. Without a doubt, this resort is one of the best places to stay in Madeira.
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($$) Vila Gale Santa Cruz
The Vila Gale Santa Cruz is perfect for families who want to stay close to the airport. It has a large outdoor pool and offers complimentary shuttle service to and from the airport.
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($) Hotel Solar Bom Jesus
The Hotel Solar Bom Jesus is a great, budget-friendly option. This family-friendly hotel has an outdoor pool, as well as a large garden, and also offers airport transfers.
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5. Where to stay in Madeira away from the crowds: Ribeira Brava
Ribeira Brava is the perfect choice if you're looking for an authentic Madeiran experience without the crowds. It is located on the south coast of Madeira and offers a quieter alternative to the bigger cities such as Funchal.
The charming town itself has many cobblestone streets and old churches and is not very touristy in general; staying here is a great way to meet some locals and experience the real Madeira.
Best area for:
Culture trip
Seclusion
Things to see & do in Ribeira Brava
Ribeira Brava is quite a sleepy town with not much going on. The small town is situated between two cliffs, and one of them has a viewpoint called São Sebastião Viewpoint which is worth checking out for some stunning views.
The promenade in Ribeira Brava is also a great place to go for a stroll, have a cold beer, and enjoy the scenery of the coast.
Best hotels to stay in Ribeira Brava
($$$) Hotel Do Campo
The Hotel do Campo is one of the best Madeira hotels. The eco-friendly luxury hotel combines the beauty of nature with modern amenities and also has an outdoor pool overlooking the ocean.
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($$) Sonho do Oceano
The Sonho do Oceano is a great mid-range option for those looking to explore Ribeira Brava. It is located near the beach and offers spacious rooms with stunning views of the Atlantic Ocean.
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($) Dazk Golden Estate
For anyone looking for a budget-friendly place to stay, the Dazk Golden Estate is a great choice. It offers modern apartments with private balconies and also has an incredible outdoor infinity pool.
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6. Where to stay in Madeira for watersports & outdoor activities: Calheta
Calheta, on the south coast, is the perfect place for anyone looking to experience some of Madeira's best outdoor activities and watersports. The area offers a wide range of things to do, from windsurfing and kayaking to hiking and rock climbing.
Additionally, the neighboring villages of Paúl do Mar and Jardim do Mar are famous for their excellent surfing conditions.
I really enjoyed Calheta because it has a sandy beach, making it one of the only beaches on the island with actual sand!
Best area for:
Surfing
Hiking
Rock climbing
Biking
Things to see & do in Calheta
Calheta is the perfect spot for those looking to experience some of Madeira's best outdoor activities and watersports. The area offers a wide range of things to do, from surfing, windsurfing, kayaking, and stand-up paddleboarding.
For all of you hikers, there are hiking trails such as the Levada de Calheta Trail, which is quite challenging and takes you through lush valleys and terraced vineyards!
Best hotels to stay in Calheta
($$$) Saccharum – Hedonist Design Resort
The five-star resort is a great choice for luxury travelers and a cool place to stay in Madeira. It has indoor and outdoor pools, and it is surrounded by lush gardens.
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($$) Calheta Beach
Calheta Beach is a great pick and offers stunning views of the Atlantic Ocean. It also has an outdoor pool and a great spa featuring a Turkish bath and hot tub. It's one of the best all-inclusive hotels in Madeira.
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($) Socalco Nature Calheta
The Socalco Nature Calheta is a great budget-friendly option for those looking to enjoy beautiful views without breaking the bank. This hotel provides stunning views of Madeira’s countryside and the ocean.
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7. Where to stay in Madeira for hiking: Sao Vicente
São Vicente is the perfect area for anyone looking to explore the best of Madeira's nature. This small mountain village is nestled in a valley and surrounded by lush forests, making it a great destination for hikers and nature lovers alike.
What I love about Sao Vicente is that its trails are not too challenging, so even beginners can enjoy them!
Best area for:
Hiking
Bird watching
Things to see & do in São Vicente
If you're visiting São Vicente, be sure to hike up Pico Ruivo. It's a challenging 3-4 hour trek to the summit, but this hike is a must-do because of the breathtaking views. Pico Ruivo is the highest point in Madeira and you will get views of the entire island.
If you're looking for a more relaxed hike, I suggest taking the La Levada do Norte trail through the dense Folhadal forest. This trail is easier and takes about two and a half hours to complete, covering a little over five kilometers. The forest is super lush and full of birds and other wildlife.
Best hotels to stay in São Vicente
($$$) Calamar Hotel
The Calamar Hotel is a great pick for luxury travelers. The luxury hotel offers an outdoor pool with great views of the Atlantic Ocean, as well as a hot tub.
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($$) Madeira Surf Lodge
The Madeira Surf Lodge is a great mid-range option for those looking to explore Sao Vicente. It offers modern double rooms with balconies and a beautiful garden to relax.
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($) Casa Da Piedade
For anyone looking for a budget-friendly place to stay, the Casa da Piedade is a great choice. The luxury villa offers spacious rooms and swimming pools.
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Other towns to consider
Porto da Cruz – This small fishing village is the perfect spot for those looking for some peace and quiet.
Ponta do Sol – This is my favorite town for all sun-worshippers, as it is known for enjoying the most hours of sunshine in the year.
Camara de Lobos – Technically a suburb of Funchal, Cama de Lobos is a great, sleepy fisher village with great seafood restaurants.
Porto Moniz – Porto Moniz is a stunning cliffside town, and without a doubt, it has the coolest natural swimming pools in Madeira.
Caniço – Cañico is another small coastal town and is known for its amazing sea views and its beautiful botanical gardens.
Jardim do Mar – Jardim do Mar is the perfect spot for anyone looking for some of Madeira's best surfing conditions.
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Where to stay in Madeira – Frequently Asked Questions
❓ What is the best place to stay in Madeira?
The best place to stay in Madeira depends on what you are looking for. If you are looking for great nightlife, Funchal is the best spot. If you want to explore the island's nature and outdoor activities, Calheta or São Vicente would be ideal choices.
📅 How many days should I stay in Madeira?
I recommend at least 5-6 days to explore the island. That way, you'll have enough time to take in the beauty of Madeira and experience some of its best activities.
☀️ What are the best months to visit Madeira?
May through July are the best months to visit Madeira, as the weather is usually very pleasant and sunny. However, if you don't mind slightly cooler temperatures, April and October can also be great times to visit.
💸 Is Madeira cheap?
Madeira is not necessarily a cheap destination; however, there are ways to save money while visiting. Staying in hostels and apartments instead of hotels can be a great way to save some cash.
🚗 How do I get around Madeira? Do I need a car?
If you are staying in Funchal, you won't need a car. However, if you want to explore other towns and areas of the island, then I highly recommend renting one.
🏖️ Where do I find the best beaches in Madeira?
Madeira is home to some quite spectacular beaches, and my favorite beaches are definitely around Machico!
✔️ Should I choose Lisbon or Madeira? What’s better?
This really depends on what you are looking for in a destination. Lisbon is the perfect choice if you want a city experience with great nightlife and culture, while Madeira is ideal if you're looking to explore nature and relax.
Where to stay in Madeira – Final Words
Madeira is a must-visit place in Europe for anyone who loves nature and the outdoors. With massive cliffs, beautiful beaches, and hiking trails everywhere you look, you are sure to have an unforgettable experience.
Furthermore, you will also find plenty of high-class resorts and amazing restaurants, making it ideal for relaxation and some quiet time. I know that with so many cool places to stay in Madeira, it's not always easy to make a decision, but I hope after this guide, you will be able to figure out where to stay in Madeira.
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