Where to Stay in Madeira (Hotels, Tips & best areas)

WHERE TO STAY IN MADEIRA: Best Areas + Best Hotels (Insider Tips)

Madeira is an island that instantly welcomes you with dramatic mountains, the endless blue of the Atlantic, and villages clinging to cliffs above the sea. But one thing I’ve learned from traveling here is this: choosing the right place to stay makes all the difference.

It determines whether you wake up to ocean views, breathe in fresh forest air, or end your day watching the sunset from your own terrace.

This guide helps you decide where to stay in Madeira based on your travel style (with or without a car, north vs south, city vs nature). I’ll also share my favorite hotels and guesthouses, including prices, locations, and insider tips.

BEST PLACES TO STAY IN MADEIRA (SHORTLIST)

• Best base without a car: Funchal

• Best base with a car: Ponta do Sol or Calheta

• Best for sunsets + sunshine: Ponta do Sol, Calheta, Jardim do Mar

• Best for nature + wild coastline: Porto Moniz, Santana

• Best for hiking access: Santana (north/east), Jardim da Serra (mountains)

• Best resort-style stay: Calheta (Saccharum Resort)

• Best budget village stay: Jardim do Mar (Maktub Guest House)

NORTH VS SOUTH MADEIRA: WHICH SIDE IS BETTER?

This is the biggest question when planning a Madeira trip, and the answer changes your entire experience.

South Madeira (Funchal, Ponta do Sol, Calheta)

• More sunshine and warmer evenings

• More restaurants and accommodation options

• Easier driving and more “vacation feel”

• Better base for sunsets

If you want bright skies, relaxed dinners, swimming, and terrace evenings, the south is the safest choice.

North Madeira (Porto Moniz, Santana)

• More dramatic coastlines and rough ocean scenery

• More rain and faster-changing weather

• Fewer crowds (especially outside summer)

• Better “remote island” vibe

If you want raw nature and moody landscapes, you’ll love the north. But plan for cooler evenings and more rain.

Insider tip
Many visitors choose the north thinking it saves driving time. In reality, Madeira’s tunnels make cross-island travel easy, so you can stay south and still visit the north often.

Driving distances across Madeira (from Funchal)

URBAN VS RURAL MADEIRA: FUNCHAL OR SMALL VILLAGES?

Funchal is the easiest base for most travelers, especially on a first trip. It offers:

• the best restaurant scene on the island

• day tours departing daily

• walkable streets

• shopping, cafés, nightlife

But Madeira becomes truly special once you leave the city and stay in a quieter village. In rural areas you get:

• calmer mornings

• fewer tourists

• better nature access

• more authentic Madeira atmosphere

My honest recommendation
If you stay 7+ days, split your time: a few nights in Funchal, then a village stay on the south-west or north coast.

ONE LOCATION VS MULTIPLE LOCATIONS: WHAT’S BEST?

Madeira is small, but driving takes longer than it looks on the map. Roads are steep and winding, and scenic stops are everywhere. So if you stay in only one place, you’ll spend more time driving.

Best strategy (7–10 days) > Base 1: Funchal (city + tours + food) & Base 2: Ponta do Sol / Calheta (sunsets + relaxed coast) OR Santana (hiking base)

Best strategy (4–6 days) > Choose 1 base:

• Without car: Funchal

• With car: Ponta do Sol or Calheta

WHERE TO STAY IN MADEIRA WITHOUT A CAR

If you’re not renting a car, your best option is Funchal. Why? Because outside the city, public transport is limited and taxis become expensive. Many villages also involve steep roads, which makes walking from bus stops uncomfortable (and unsafe after dark).

Best area without a car: Funchal

• best transport connections

• tours pick you up here

• restaurants + supermarkets nearby

• easiest logistics

Best Hotel without a car - Monumentalis Savoy Residence – Funchal
Price: from approx. €220 per night
Why stay here: central, modern, rooftop pool, ideal for first-time Madeira visitors

click here to see

More Inspiration (if you click on the title you will get to see the hotel)

Casa Madeira – Ponta do Sol

Why I love this AirBnB: click here to see my Reel on Instagram about it

Ponta do Sol is one of the sunniest spots on the island. Casa Madeira is a charming guesthouse/AirBnb with sea views, perfect for anyone seeking peace and quiet while staying close to Madeira’s highlights. The atmosphere is warm and personal, and the Atlantic views are simply stunning.

• Price: from approx. €100 per night

• Location: Ponta do Sol, ideal for sunsets and relaxed days

• Special feature: Private terrace with ocean view,

• Perfect for: Couples, peace seekers, independent travelers

MY FINAL THOUGHTS

Madeira offers the perfect hotel for every travel style, from luxurious city residences to charming quintas hidden in the mountains.

If I had to pick the best strategy:
Stay in Funchal first, then move to the south-west (Ponta do Sol or Calheta) for sunsets and a slower rhythm.

If you want my full Madeira itinerary or my personal maps with all locations saved, you can find everything in my digital guide.

It includes all the spots from this article plus practical tips, routes, and planning details. Here you get access

More Madeira Content >

Aqua Natura Bay – Porto Moniz

Why I love it:

Located directly next to the famous natural pools, this hotel offers an infinity pool and breathtaking Atlantic views. After a hike, it’s the perfect place to unwind and reconnect with nature.

• Price: from approx. €150 per night incl. breakfast

• Location: Porto Moniz, ideal for nature and ocean lovers

• Special feature: Spa area, sea-view rooms, direct access to lava pools

• Perfect for: Ocean lovers, wellness fans, couples

Maktub Guest House – Jardim do Mar

Why I love it, click here to see my Reel on Instagram about it

Jardim do Mar is a small paradise for surfers and those seeking tranquility. Maktub Guest House is simple yet stylish, ideal if you want to experience authentic Madeira away from the crowds. + BUDGET FRIENDLY

• Price: from approx. €70 per night

• Location: Jardim do Mar, charming village with surfer vibes

• Special feature: Relaxed atmosphere, authentic island feeling

• Perfect for: Budget travelers, surfers, solo travelers

Quinta do Furão – Santana

Why I love it:

Perched high above the wild north coast near Santana, this hotel offers traditional charm, outstanding cuisine, and views that will take your breath away.

• Price: from approx. €220 per night incl. breakfast

• Location: Santana, perfect for hikers and nature lovers

• Special feature: Panoramic restaurant, own wine production

• Perfect for: Nature lovers, foodies, romantics

Quinta Falcões do Sol – Fajã da Ovelha

Why I love it:

A peaceful retreat surrounded by nature, ideal if you want to slow down and enjoy unforgettable sunsets over the mountains.

• Price: from approx. €200 per night

• Location: Faja da Ovelha

• Special feature: Private setting, perfect base for hiking

• Perfect for: Peace seekers, nature lovers

Hotel Quinta da Serra – Jardim da Serra

Why I love it:

A historic estate with lush gardens, a spa area, and plenty of greenery. For me, this is the perfect place to truly unwind and breathe.

• Price: from approx. €150 per night

• Location: Jardim da Serra – quiet and nature-filled

• Special feature: Organic restaurant, spa, sustainable concept

• Perfect for: Nature lovers, wellness travelers

Saccharum Resort & Spa – Calheta

Why I love it:
This hotel is a true gem if you’re looking to combine beach vibes with a touch of luxury. Located right on the coast in Calheta, Saccharum Resort & Spa offers stunning Atlantic views and a relaxed resort atmosphere without feeling overly formal.

The setting is calm and slightly removed from the busier parts of the island, perfect if your idea of a dream vacation includes slowing down, enjoying sunsets, and listening to the ocean.

• Price: from approx. €180–240 per night (depending on season)

• Location: Calheta, quiet coastal area with direct ocean access

• Special feature: Stylish spa & pool areas by the sea, contemporary design, relaxed luxury feel

• Perfect for: Couples, relaxation seekers, beach lovers, and anyone who enjoys resort-style comfort without crowds