The Best Hotels in Madeira: Where to Stay for Every Kind of Trip
Madeira isn’t an island where you can just pick a hotel and figure the rest out later. Between the mountains, the cliffs, the tiny fishing villages and the volcanic natural pools around the coast, where you sleep shapes what kind of trip you end up having.
I put this list together to cover the island properly, not just the obvious Funchal hotel strip. Some of these places are full luxury resorts, some are tiny guesthouses with maybe eight rooms, and a couple of them are the kind of spot you only hear about from someone who’s actually been. That’s the point of this guide.
Quick Answer: The Best Hotels in Madeira
If you want dramatic cliffside views and a proper wine estate feeling, Quinta do Furão in Santana is hard to beat. For direct access to Madeira’s famous volcanic pools, Aqua Natura Bay in Porto Moniz, is the right choice.
If it’s peace, mountains and total disconnection you’re after, Hotel Quinta da Serra in Jardim da Serra is a hidden gem. And if you want a small, soulful stay with real character, Maktub Guest House in Jardim do Mar is one of the most talked-about little places on the whole island.
I recommend booking your activities and experiences early, especially popular attractions and tours, as spots can fill up quickly. With my GetYourGuide „TRAVELWITHMARRY5„ discount code, you can also save 5% on your bookings.
A Bit About How Madeira Is Laid Out
Madeira is small, but the terrain makes everything feel further apart than it looks on a map. The roads twist through mountains and along cliffs, so a 30km drive can easily take an hour.
Funchal, the capital, sits on the south coast and is where most flights and cruise ships arrive. It’s the most convenient base if you don’t want to rent a car and want restaurants, shopping and nightlife within reach. The south and southwest coast (Ponta do Sol, Calheta, Jardim do Mar) is the sunniest, calmest part of the island, with the best swimming conditions and a slower pace. The north coast (Santana, Porto Moniz) is wilder and greener, home to the island’s famous natural swimming pools and thatched traditional houses. The mountains in the interior (Jardim da Serra, Fajã da Ovelha) are where you go for total quiet, hiking trails, and views that don’t look real.
Knowing which of these you actually want matters more in Madeira than in almost any other destination I’ve written about.
Quinta do Furão — Santana, North Coast
Quinta do Furão sits on a clifftop above Santana, surrounded by its own vineyard, with the north-east coast and the mountains stretching out on either side. It’s genuinely one of those places where the setting does most of the work, you’re eating breakfast on a terrace with the Atlantic on one side and Pico Ruivo, Madeira’s highest peak, on the other.
The hotel has its own wine cellar where you can taste Madeiran wines made from grapes grown right on the property, and the restaurant leans heavily into local, traditional dishes rather than generic hotel buffet food. It’s also close to Santana’s famous triangular houses, which are worth seeing even if you’re not staying overnight.
Pros
- Clifftop views over the north coast and mountains
- On-site vineyard and wine cellar, with proper Madeiran wine tastings
- Great base for hiking, close to some of the island’s best levada trails
- Peaceful, rural setting away from the Funchal crowds
Cons
- About 40 minutes from the airport and Funchal, so you’ll want a rental car
- North coast weather is more changeable than the south, expect more cloud and rain
- Isolated location means limited restaurant options nearby beyond the hotel itself
Aqua Natura Bay — Porto Moniz, North Coast
If Madeira’s famous natural swimming pools are on your list, and they should be, Aqua Natura Bay puts you close enough to walk to them in a couple of minutes. Porto Moniz’s volcanic lava pools are one of the most photographed spots on the island, and having them essentially at your doorstep (with free access included as a guest) is a real advantage over staying elsewhere and driving in.
The hotel itself leans into the wellness angle, with an indoor and outdoor pool, sauna. Rooms come with balconies looking straight out over the Atlantic and the dramatic cliffs the north coast is known for.
Pros
- Steps away from Porto Moniz’s iconic natural swimming pools
- On-site dive centre, ideal if you want to explore the coastline underwater
- Strong wellness facilities: sauna, Turkish bath, indoor and outdoor pools
- Dramatic ocean and cliff views from most rooms
Cons
- Furthest-flung of the north coast options, over an hour from the airport
- North coast microclimate means it can be noticeably cooler and windier than Funchal
- Natural pools can get crowded with day-trippers by late morning, go early
Hotel Quinta da Serra — Jardim da Serra, Mountains
This one is for people who want to properly switch off. Hotel Quinta da Serra sits 820 metres up in the mountains above Câmara de Lobos, on a huge estate with certified organic gardens, ancient trees, and a history that goes back to a 19th-century wine merchant. It’s a genuinely unusual place to stay, quiet in a way that’s hard to find elsewhere on the island.
The hotel grows much of what ends up on your plate, and being a carbon-neutral, bio-certified property, it attracts a specific kind of traveler who cares about that. It’s also a great base for hiking, with levada trails and viewpoints like Boca da Corrida within easy reach.
Pros
- Total peace and quiet, surrounded by organic gardens and century-old trees
- Restaurant sources much of its produce directly from the estate
- Excellent base for hiking and levada walks
- Genuinely unique, historic property with a real sense of place
Cons
- Remote, and only reachable via a narrow mountain road, a rental car is a must
- Limited nightlife or restaurant options outside the hotel
- Cooler temperatures at altitude, pack layers even in summer
Saccharum Resort & Spa — Calheta, South Coast
Saccharum is the pick if you want a proper resort experience with direct beach access, which is genuinely rare in Madeira since most of the island’s coastline is rocky. It’s built on the site of a former sugar cane mill on the south coast, and the design leans into that heritage with sugarcane-themed decor throughout.
This is a five-star property with multiple pools, an Ayurveda-inspired spa, several restaurants and bars, and one of the only sandy beach setups on the whole island just a short walk from the hotel. It’s a strong choice if you want resort comfort without giving up access to Calheta’s marina and town.
Pros
- One of Madeira’s few hotels with genuine sandy beach access
- Extensive spa with Ayurvedic-inspired treatments and heated pools
- Strong dining variety, multiple restaurants and bars on site
- South coast location means more reliable sun than the north
Cons
- Large resort feel, less intimate than the smaller quintas on this list
- On the pricier end for Madeira
- About 40 minutes from Funchal and the airport
Quinta Falcões do Sol — Fajã da Ovelha, West Coast
Fajã da Ovelha is about as far off the beaten path as Madeira gets, a tiny, remote village on the island’s western tip. If you’re chasing that „nobody else knows about this“ feeling, this is where you’ll find it. Staying out here means insane coastal views and a level of quiet that simply doesn’t exist closer to Funchal.
This part of the island rewards travelers with a rental car and a few days to spare, since you’re within reach of some of Madeira’s most spectacular and least crowded viewpoints and hiking trails.
Pros
- About as remote and untouched as Madeira gets
- Dramatic west coast scenery with very few other tourists around
- Great jumping-off point for lesser-known hiking trails and viewpoints
Cons
- Far from Funchal and the airport, plan on over an hour’s drive
- Not the right pick if you want to be near the island’s main sights
I recommend booking your activities and experiences early, especially popular attractions and tours, as spots can fill up quickly. With my GetYourGuide „TRAVELWITHMARRY5„ discount code, you can also save 5% on your bookings.
1905 Zino’s Palace — Ponta do Sol, South Coast
This one is unlike anything else on this list. 1905 Zino’s Palace is a pink, late-19th-century mansion perched in the hills above Ponta do Sol, originally built as a summer residence for the noble Zino family, and named after Paul Alexander Zino, the ornithologist and conservationist who once called it home. After sitting abandoned for decades, it was fully restored and today it’s a tiny nine-room boutique hotel, adults-only, surrounded by banana plantations with sweeping views down to the Atlantic.
The whole place leans into that romantic, old-world character, think pastel-colored rooms, Art Deco touches and antique furnishings, alongside a small heated pool and a glass-walled restaurant that’s genuinely worth booking a table at even if you’re not staying the night. It’s an intimate, slightly eccentric stay, and exactly the kind of place I’d send someone looking for something with real character.
Pros
- Genuinely unique historic building with real architectural character
- Small and intimate, only nine rooms, so it never feels crowded
- Sweeping views over banana plantations and the Atlantic from the terrace
- Well-regarded restaurant with a proper evening dining experience
- Sunny, sheltered south coast location and easy 20-minute drive to Funchal
Cons
- Adults-only, so not an option if you’re traveling with kids
- Narrow access road up to the hotel, take it slow on the final approach
- A rental car is essentially required, there’s little within walking distance
Monumentalis Savoy Residence — Funchal
If you want to be based in the capital, close to restaurants, the old town, the marina and Funchal’s famous promenade, this is your area. Funchal is genuinely the most convenient base on the island if you don’t want to rent a car for your entire trip, since taxis, buses and tours all depart from here.
Staying in Funchal also means you’re close to attractions like the Mercado dos Lavradores farmers market, the cable car up to Monte, and the botanical gardens, all without a long drive.
Pros
- Most convenient base if you’re not renting a car for the whole trip
- Close to Funchal’s restaurants, old town and marina
- Easy access to tours, the cable car, and the botanical gardens
Cons
- Busier and more built-up than anywhere else on this list
- You’ll still want at least a rental car for a day or two to see the rest of the island
- Less of that „wild Madeira“ feeling than the coastal and mountain options
Maktub Guest House — Jardim do Mar, West Coast
Maktub is the odd one out on this list, and I mean that as a compliment. It’s a small, family-run guesthouse in the old fishing village of Jardim do Mar, built around a walled garden full of flowers, hammocks, and fruit trees guests are welcome to pick from. It’s simple rather than luxurious, but it has such a charm, that a lot of bigger hotels can’t create.
People who stay here tend to fall for the village itself just as much as the guesthouse, a tiny, cliffside spot surrounded by ocean on one side and steep hills on the other, with a handful of restaurants and not much else. It’s a great pick if you want to slow right down for a few days.
Pros
- Genuinely unique, personal, family-run atmosphere
- Beautiful garden setting with homemade breakfasts
- Jardim do Mar itself is a stunning, little-visited fishing village
Cons
- Basic rather than luxurious, shared bathrooms in some room types
- No kitchen on site, and very few dining options in the village itself
- Best suited to travelers who want simplicity over amenities
A Quick Tip Before You Book Anything
Whatever activities you’re planning around Madeira, book them earlier than you think you need to. Popular boat tours, levada hikes with a guide, and diving trips at the natural pools fill up fast in high season, especially anything departing from smaller towns like Porto Moniz or Calheta where operators run limited daily slots.
I book almost everything through GetYourGuide, since you can usually cancel for free up to 24 hours before. Use my code „TRAVELWITHMARRY5“ at checkout to save.
FAQs About Hotels in Madeira
Do I need a rental car in Madeira?
For most of the hotels on this list, yes. Funchal is the only base where you can realistically get by without one, since taxis and tours cover the main sights. Everywhere else, especially Santana, Porto Moniz, Jardim da Serra and Fajã da Ovelha, a car is necessary to get around and to reach the hotel itself.
What’s the best area to stay in Madeira for a first visit?
I’d say either Funchal, if you want convenience and don’t want to drive much, or the south coast around Ponta do Sol or Calheta, if you want better weather and a slower pace while still being within reach of the capital.
Is Madeira good for a beach holiday?
It can be, but manage your expectations. Madeira’s coastline is mostly cliffs and volcanic rock rather than long sandy beaches. Calheta and Saccharum’s stretch of coast are among the few spots with genuine sandy beach access, and the natural pools at Porto Moniz are a completely different, but equally special, kind of swimming experience.
When is the best time to visit Madeira?
Madeira has mild weather nearly year-round, which is part of its appeal. April to October tends to be driest and warmest, especially on the south coast, while the north coast stays cooler and cloudier throughout the year regardless of season.
Is Madeira expensive?
It’s more affordable than most Western European island destinations, though prices vary a lot by hotel type. The smaller guesthouses and quintas on this list tend to be noticeably better value than the big resort hotels in Funchal or Calheta.
Final Thoughts on the Best Hotels in Madeira
Funchal makes sense if convenience matters most to you, the south coast around Ponta do Sol or Calheta if you want sun and beach access, the north coast if the natural pools and dramatic scenery are the whole point of your trip, and the mountains or the far west if you just want to disappear for a few days.
Madeira rewards people who are willing to move around a bit rather than base themselves in one spot for the whole trip. If you have the time, I’d genuinely recommend splitting your stay across two of these regions rather than picking just one.
Some of the links in this post are affiliate links, meaning I may earn a small commission if you book through them, at no extra cost to you. I only recommend places I’d genuinely consider staying at myself.