Looking for the best hotels in Funchal for a dream vacation in Madeira? Well, when planning your visit to Madeira Island, one of the most important decisions is choosing where to stay. The capital city of Funchal offers a wide variety of accommodation options from charming boutique hotels in the historic center to luxurious resorts overlooking the Atlantic Ocean.
If you want to make the most of your time, exploring the island’s breathtaking landscapes, relaxing in comfort, and enjoying top-class hospitality, knowing the right hotel to stay in Funchal Madeira will help you make an informed choice.
In this guide, we highlight ten exceptional hotels in Funchal. Whether you’re traveling as a couple, with family, in a group of friends, or solo, these hotels offer unforgettable experiences. And to truly explore every corner of Madeira, we recommend pairing your stay with a rental from 7M Rent a Car, giving you the freedom to travel at your own pace.
10 Best Hotels to Stay in Funchal Madeira
Hotel Madeira
Address: Rua Ivens, nº21, Funchal (Madeira), Portugal
Website: https://www.hotelmadeira.com
Hotel Madeira is a budget-friendly yet comfortable 3-star hotel in the city center. Perfect for travelers who want simplicity without compromising location, it offers clean rooms, a rooftop pool, and friendly service.
From here, you can walk to the marina, shops, and restaurants, making it an excellent choice for those who want everything on their doorstep.
Dorisol Buganvilia Studio Hotel Funchal
Address: Rua Casa Branca, nº98, Funchal (Madeira), Portugal
Website: https://www.dorisol.com
Dorisol Buganvilia Studio Hotel offers self-catering studios with balconies, ideal for travelers seeking flexibility. This 3-star property is part of the Dorisol complex, giving guests access to multiple pools, restaurants, and entertainment.
Located in the Lido area, it’s close to the ocean promenade, shops, and cafes. It’s a practical option for families or long-term visitors.
Sé Boutique Hotel Funchal
Address: Travessa do Cabido, nº 17 9000-715 Funchal, Madeira, Portugal
Website: https://www.seboutiquehotel.com
Sé Boutique Hotel is a charming 4-star property located near Funchal Cathedral, in the heart of the city. Its design blends modern style with references to Madeira’s cultural heritage.
The rooftop terrace offers a cozy space for drinks while enjoying city views. With museums, markets, and restaurants within walking distance, it’s an ideal base for those who love urban exploration.
Three House Hotel Funchal
Address: Rua Brigadeiro Oudinot nº2 – 9060-209 Funchal, Madeira, Portugal
Website: https://www.threehouse.com
Located in the heart of Funchal, the Three House Hotel offers a perfect blend of modern design and homely comfort. This 4-star gem is ideal for travelers who appreciate stylish interiors and a relaxed atmosphere.
Specialties include a rooftop swimming pool with panoramic views over the city and ocean, as well as spacious suites equipped with kitchenettes, perfect for longer stays or those who prefer self-catering. The hotel’s central location allows easy walking access to Funchal’s Old Town, markets, and marina.
Hotel Caju Funchal
Address: Rua da Carreira, nº112 – 9000-042 Funchal, Madeira, Portugal
Website: https://hotelcaju.com
Hotel Caju combines contemporary design with a cozy boutique feel. This stylish 4-star property is situated just steps from Funchal’s main attractions, making it an excellent choice for those who want to immerse themselves in local culture.
Its rooms feature modern furnishings, natural light, and thoughtful details. The in-house restaurant serves delicious breakfasts with fresh local products. With its prime location, you can enjoy Funchal’s dining, shopping, and nightlife without needing a car although renting one from 7M Rent a Car lets you explore further afield and the entire island with ease.
Hotel Baía Azul Funchal
Address: R. da Quinta Calaça 1, São Martinho, 9004-530 Funchal, Madeira
Website: https://www.baiaazul.pt
Hotel Baía Azul is a coastal 4-star property offering breathtaking Atlantic views. Located in São Martinho, it is ideal for those seeking a balance between city access and seaside tranquility.
The hotel boasts multiple swimming pools, lush gardens, and direct access to the promenade. Guests can enjoy wellness facilities, varied dining options, and spacious rooms with balconies overlooking the ocean. It’s perfect for couples seeking a romantic escape or families wanting a relaxing environment.
Hotel Alto Lido Funchal
Address: Estrada Monumental 316, São Martinho, 9000-250 Funchal
Website: https://www.altolido.pt
Hotel Alto Lido stands out for its elegant renovation and inviting atmosphere. With a location close to the Lido Promenade, this 4-star hotel offers easy access to the ocean, restaurants, and bars.
Its rooms are modern and comfortable, many with sea views. Guests can enjoy indoor and outdoor pools, a spa, and a variety of dining experiences. This is a great choice for travelers who want contemporary style in a relaxed coastal neighborhood.
The Views Baía
Address: Rua Das Maravilhas, nº74, Funchal (Madeira), Portugal
Website: https://www.theviewshotels.pt
As the name suggests, The Views Baía offers spectacular views over Funchal Bay. This 4-star adults-only hotel is perfect for couples seeking a peaceful retreat.
It features a panoramic swimming pool, wellness center, and stylish rooms designed for comfort and relaxation. Being adults-only ensures a serene atmosphere, while its elevated location provides unmatched views of the city and ocean.
Meliá Madeira Mare Hotel Funchal
Address: Rua Leichlingen, nº2-4, 9000-003 Funchal, Madeira
Website: https://www.meliamadeira.com
For those seeking luxury, the Meliá Madeira Mare is one of the best hotels to stay in Funchal. This 5-star seafront hotel offers refined comfort, exceptional service, and direct access to the ocean.
Facilities include a spa, indoor and outdoor pools, sophisticated restaurants, and elegantly decorated rooms with panoramic sea views. Its location in the Lido area means you’ll be close to beautiful oceanfront walks, gardens, beaches, playgrounds, and numerous dining options, all just a short drive from the city center.
Quinta Mirabela – Design Hotel Funchal
Address: Caminho do Monte nº105-107, Funchal (Madeira), Portugal
Website: https://quinta-mirabela.com
Perched on the hills above Funchal, Quinta Mirabela offers a unique vantage point over the city and harbor. This 5-star design hotel combines traditional Madeiran architecture with modern interiors.
Guests can enjoy a swimming pool, wellness area, gourmet restaurant, and shuttle service to the city center. Its location makes it a peaceful escape while keeping you connected to the main attractions.
Why You Should Experience One of These Best Hotels to Stay in Funchal, Madeira?
Choosing one of the best hotels to stay in Funchal means you’ll enjoy comfort, convenience, and access to some of the island’s most beautiful spots. Whether you opt for a luxury 5-star resort, a chic boutique stay, or a budget-friendly base, these hotels all offer warm Madeiran hospitality and unique experiences.
Madeira is more than just a holiday destination! It’s a place where you can explore volcanic landscapes, hike scenic levadas, taste award-winning wines, and relax by the ocean.
Make Your Trip Effortless with 7M Rent a Car
While Funchal is a fantastic city to explore on foot, Madeira’s most breathtaking sights are scattered across the island. Renting a car with 7M Rent a Car allows you to:
- Visit remote beaches and mountain viewpoints
- Plan flexible day trips without relying on public transport
- Discover hidden villages and authentic restaurants
- Enjoy comfort and convenience for families, friends, couples, or solo travelers
With transparent pricing, reliable vehicles, and friendly local service. 7M Rent a Car makes it easy to turn your hotel stay into a full Madeira adventure.
Discover more about How to Rent a Car in Madeira: 10 Essential Tips in our guide.
