With its dramatic cliffs, mild climate, and vibrant culture, Madeira Island is a paradise for travelers seeking both adventure and serenity. But to truly elevate your stay, you deserve accommodations that mirror the island’s natural beauty and sophistication. That’s exactly where luxury hotels in Madeira Island come into play.
From globe-renowned properties perched atop ocean-view cliffs to ultra-modern seaside resorts, Madeira’s luxury hospitality scene offers unparalleled experiences. Whether you’re celebrating a special occasion, honeymooning, or simply indulging, your retreat begins at one of these top-tier hotels.
Let’s explore five standout options and discover why booking one of these luxury hotels in Madeira Island is the ultimate way to experience the island in style.
Luxury Hotels in Madeira Island: Top 5
5th – Barceló Funchal Oldtown Hotel
Location: Rua da Alfândega nº9, Funchal
Specialty: History-flavoured luxury in the heart of the city
Nestled in Funchal’s historic Old Town, Barceló Funchal Old Town Hotel offers modern comfort in an area brimming with culture and charm. Its bright, designer interiors reflect Madeira’s contemporary energy while delivering boutique elegance.
Top Highlights
- City-centre location: Step out directly into Old Town’s cobblestone streets, cafés, and galleries.
- Stylish rooms: Palm-printed fabrics, marble bathrooms, and well-placed balconies.
- Rooftop pool deck: A serene spot overlooking the Atlantic and city skyline.
- On-site bar/dining: Creative cocktails and modern Mediterranean fare.
This hotel delivers relaxed sophistication within easy reach of Funchal’s hip dining, cultural venues, and scenic promenade.
4th – Saccharum Hotel Resort & Spa
Location: Rua da Serra D’Água, nº1, Arco da Calheta
Speciality: Industrial-chic meets oceanfront relaxation
Set along the southwestern coast, the Saccharum Hotel Resort & Spa draws inspiration from Madeira’s historic sugarcane mills. Imagine sleek concrete lines, motorized shading, glass-walled pools, and panoramic connections to the Atlantic, this is modern luxury at its finest.
Why It Shines
- Industrial design: A bold project with polished concrete, steel beams, and simple lines.
- Infinity pools: Outdoor and rooftop pools that blend seamlessly into the horizon.
- Full-service spa: Treatments using local ingredients, saunas, and relaxation rooms.
- Direct rockpool access: Swim in tranquil rockpools below the hotel terrace.
Saccharum beautifully combines industrial style with simplicity and elegance, capturing the essence of the island’s sugar heritage whilst positioning itself among top-tier luxury hotels in Madeira Island.
3rd – Belmond Reid’s Palace
Location: Estrada Monumental nº139, Funchal
Speciality: Legendary elegance and oceanfront charm
Since 1891, Belmond Reid’s Palace has set the standard for luxury in Madeira. Tucked into a dramatic clifftop setting, with botanical gardens and breathtaking ocean views, its charm is timeless making it a quintessential entry on any list of luxury hotels in Madeira Island.
Highlight Features
- Heritage ambience: Rich wood panelling and period décor evoke Old-World glamour.
- Clifftop gardens: Stroll through lush terraces framed by exotic plants and sweeping vistas.
- Michelin-starred dining: Elegant afternoon tea service overlooking the sea.
- Boutique spa: High-end treatments, fitness studios, and poolside elegance.
With its unforgettable atmosphere and historic sophistication, Reid’s Palace delivers an indulgent retreat that feels like you’ve stepped into a luxury novel a perfect complement to Madeira’s natural beauty.
2nd – Dreams Madeira Resort Spa & Marina
Location: Marina da Quinta Grande, Caniçal
Speciality: Family-focused luxury steps from the marina
For a full-service indulgence, Dreams Madeira Resort Spa & Marina offers an all-inclusive retreat with refined accommodations and marina-service convenience. It’s ideal for those seeking effortless comfort while staying close to coastal activities.
Standout Features
- Handy location: Marina access makes sailing in clear waters or fishing easy.
- All-inclusive luxury: Gourmet dining, drinks, and daily entertainment included.
- Spa & pools: Water circuits, ocean-view pools, and a top-tier spa.
- Family friendly: Kid’s club, family suites, and tailored kids’ programs.
Dreams Madeira combines convenience with elegance in a seaside setting, perfect for families, couples and anyone seeking relaxing luxury.
1st – Hotel Savoy Palace
Location: Avenida do Infante nº25, Funchal
Speciality: Modern elegance meets panoramic ocean views
Rising proudly above Funchal’s marina, Hotel Savoy Palace blends contemporary design with exceptional amenities. Boasting dramatic architecture, floor-to-ceiling windows in all rooms, and multiple infinity pools, it instantly earns its place among luxury hotels in Madeira Island.
Why It Stands Out
- Spectacular design: Every detail, from the marble lobbies to the designer lighting, exudes modern luxury.
- Unmatched views: Enjoy sweeping ocean panoramas from private balconies, spa facilities, and dining venues.
- World-class spa: Featuring indoor/outdoor pools, saunas, hammams, and tailored treatments.
- Gastronomy: On-site restaurants serve everything from Madeiran traditions to international cuisine.
With its sleek architecture and defined sense of place, the Savoy Palace offers sophisticated comfort with a distinctly Madeiran twist, ideal for those seeking contemporary luxury in Funchal.
Why Travellers Should Experience One of These Luxury Hotels in Madeira Island
1. Unmatched Accommodations & Amenities
Each hotel on this list offers a unique blend of world-class design, amenities and ambience. From cliffside indulgence at Reid’s, contemporary edge at Saccharum to full-service ease at Dreams Madeira.
2. Personalized, Elevated Hospitality
From butler service to boutique styling, these hotels reflect Madeira’s warm hospitality and attention to detail. Staff often anticipate preferences before you do, whether you’re celebrating, relaxing, or reconnecting.
3. Ideal Base for Island Exploration
The hotels’ locations, from city center to secluded coastlines, provide excellent jumping-off points for island adventures. And if you choose to rent a car on Madeira Island through 7M Rent a Car, you’ll experience maximum convenience and flexibility.
4. Spa, Dining, and Well-Being
All of these hotels have high-end spas that use local elements like sugar cane and exotic plants. The exquisite Michelin-starred cuisine and ocean-view lounges rounds out a full sensory experience.
5. Unique Design Experiences
Whether it’s the heritage décor of Reid’s Palace, the industrial edge of Saccharum, or the boutique charm of Barceló Oldtown, each property tells a story, making your stay more memorable.
Luxury Hotels in Madeira Island: Final Thoughts
Ultimately, choosing among the luxury hotels in Madeira Island is a matter of personal taste, but rest assured, any of these five will guarantee a retreat that resonates with beauty, comfort, and island charm.
If you’re planning an unforgettable Madeira getaway, pairing a stay at a top-tier hotel with the freedom of a rental car Madeira Island by 7M Rent a Car is the smartest way to fully immerse yourself in everything this magical island has to offer.
Book your dream stay today and start imagining sunsets in sophisticated oceanfront lounges, spa days with sweeping views, and strolls through warm, historic streets. Madeira awaits.
Discover more about the Why You Should Rent a Car in Funchal City – 5 Key Benefits, in our guide.
