When planning a visit to the enchanting capital of Madeira, finding the perfect place to stay can make or break your experience. While large resorts and chain hotels have their perks, the charm and personal touch of a boutique hotel in Funchal offers a more authentic and intimate encounter with the city. Here we reveal eight exquisite boutique hotels that capture the essence of this vibrant island destination.
9 Boutique Hotels in Funchal you should consider staying in
1. Castanheiro Boutique Hotel
Nestled in the heart of Funchal’s historic quarter, Castanheiro Boutique Hotel is a haven of tranquility with a dash of urban flair. Notably, this stylish retreat merges five beautifully restored buildings, dating back to the 18th and 19th centuries. Moreover, guests can enjoy a rooftop infinity pool with panoramic views, an indulgent spa and tastefully decorated rooms that marry classic design with modern comforts. Furthermore, the hotel’s location makes it easy to explore nearby attractions, from Mercado dos Lavradores to Funchal Cathedral.
Why should you stay here: This boutique hotel offers unmatched city views from the rooftop and a central location, perfect for sightseeing.
2. Sé Boutique Hotel
Art lovers will undoubtedly fall in love with Sé Boutique Hotel, an eclectic gem located near Funchal’s Cathedral. This stylish boutique hotel boasts colourful, art-inspired decor that adds a playful yet elegant vibe to the property. Rooms are comfortable and filled with personality, while the rooftop bar provides a lively space to relax and mingle with fellow travellers. Thanks to its central location, all of Funchal’s cultural highlights are easily accessible on foot.
Why should you stay here: This boutique hotel offers a fun and artistic atmosphere with easy access to the best of Funchal.
Have a look at the Funchal Old Town Restaurants: 7 Unforgettable Dining Experiences.
3. Les Suites at The Cliff Bay

“hotel THE CLIFF BAY . Romantic Dinner” by PortoBay Trade is licensed under CC BY-ND 2.0.
Offering a modern take on boutique luxury, Les Suites at The Cliff Bay provides an exclusive experience with expansive suites, each featuring breathtaking sea views and private balconies. The hotel shares some amenities with its sister property, The Cliff Bay, including Michelin-starred dining at II Gallo d’Oro. Additionally, guests can indulge in wellness treatments, dip in the saltwater pool or take in the beauty of the Atlantic from beautifully designed suites that define contemporary opulence.
Why should you stay here: This boutique hotel is perfect for a luxurious and spacious stay with premier culinary experiences.
4. Quinta Jardins do Lago
Step back in time with a stay at Quinta Jardins do Lago, a charming 18th-century mansion turned luxury boutique hotel. This property is renowned for its immaculate gardens, where over 500 species of plants thrive. Guests will delight in elegantly appointed rooms with a colonial flair and savour exquisite cuisine at the on-site restaurant, Beresford, which highlights fresh, local ingredients. Beyond the aesthetics, the hotel’s atmosphere is as serene as it is sophisticated, making it ideal for travellers who seek a refined escape.
Why should you stay here: This boutique hotel is a botanical paradise with a rich history and refined elegance.
5. Hotel Quinta da Casa Branca
Tucked away in a quiet area of Funchal, Hotel Quinta da Casa Branca boasts a sleek, minimalist design surrounded by expansive gardens. What sets this property apart is its seamless blend of modern sophistication and lush surroundings. In particular, the luxury suites, award-winning spa and gourmet dining options create an intimate, five-star experience. It’s ideal for those seeking tranquillity within easy reach of the city centre.
Why should you stay here: This boutique hotel is an ultimate retreat for those seeking peace and relaxation, all within walking distance of Funchal’s attractions.
6. Turim Santa Maria Hotel

Funchal, city centre
Modern and chic, the Turim Santa Maria Hotel brings contemporary flair to Funchal’s boutique hotel scene. Not only does it feature spacious rooms and a rooftop pool, but it also offers attentive service. Moreover, its central location and the hotel’s sleek design and modern aesthetics, make it a top pick for those who appreciate both style and comfort.
Why should you stay here: This boutique hotel combines a fresh and modern atmosphere with convenience and a touch of luxury, in the heart of the city.
7. Caju Le Petit Hotel
Caju Le Petit Hotel is a chic, urban boutique hotel offering a seamless blend of modern style and eco-conscious design. Located in the heart of Funchal, this small yet luxurious property prides itself on sustainable practices and locally inspired decor. In addition, its cosy atmosphere and exceptional service make it a hidden gem.
Why should you stay here: This boutique hotel is ideal if you value sustainable travel and crave a stylish yet intimate setting.

Funchal’s marina
8. Hotel Albergaria Dias
Overlooking Funchal’s harbour, Hotel Albergaria Dias offers a cosy and welcoming atmosphere. This family-run boutique hotel in Funchal features traditional Portuguese decor, a beautiful garden and personalised service. Furthermore, its convenient location places guests just steps away from the vibrant Zona Velha, Funchal’s historic old town.
Why should you stay here: This boutique hotel is a quiet, eco-conscious retreat, perfect for exploring Madeira’s green and untamed north.
9. 7M Boutique Hotel

7M Boutique Hotel
For an unforgettable experience, choose the 7M Boutique Hotel, a delightful 4-star retreat perfectly situated in a prime location. Just steps away from Forum Madeira and numerous local attractions, this boutique gem is celebrated for its chic decor, attentive personalized service, and a host of comfortable, thoughtfully designed amenities.
Why should you stay here: This boutique hotel offers a fun and artistic atmosphere with easy access to the best of Funchal.
Boutique Hotel Funchal: Conclusion
So, whether you’re drawn to historic charm, modern luxury or breathtaking views, these hotels provide an unforgettable experience. Each property on this list promises an unforgettable experience, blending Madeira’s rich heritage with the comforts of boutique hospitality. From serene retreats to vibrant city stays, these hidden gems promise to leave a lasting impression. Now is the time to embark on your journey to explore Madeira’s unique blend of culture and nature.
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