10 Best Luxury Hotels in Madeira

Where to Stay in Madeira?

Where you stay in Madeira depends on what you want to do, from the capital and its old town to beach villages, the north coast pools and the mountains. Here are the main areas and what each is known for.

1. Funchal – Best for First-Time Visitors Funchal is the capital, on the south coast. It has the Old Town, local markets and the Monte cable car, which makes it an easy base for a first visit.

• Old Town (Zona Velha): Ideal for local culture, with historic streets and many dining options.
• Lido Area: Great for beach access, swimming pools, and promenades.
• City Center: Convenient for shopping, museums, and transportation.

2. Calheta – Best for Beach Lovers Calheta is on the southwest coast and has one of the few sandy beaches on the island. The sand was imported from Morocco when the beach opened in 2004.

• Calheta Beach Area: Close to the beach, cafés, and restaurants.
• Hillside Villas: Higher up, with views over the ocean.

3. Machico – Best for Tradition and Adventure Machico is on the east coast. It combines historical sites with access to hiking trails and beaches.

• Town Center: Near the beach, landmarks, and local dining.
• Near the Marina: For ocean views and water activities.

4. Santa Cruz – Best for Families Santa Cruz is on the east coast, about 16 km from Funchal. It has Praia das Palmeiras, and the Aquaparque water park is a 10-minute walk from the beach.

• Near the Beach: Easy access to Praia das Palmeiras and seaside dining.
• Village Center: Shops and restaurants within walking distance.

5. Ponta do Sol – Best for Sunshine Ponta do Sol is on the south coast, west of Ribeira Brava. Its name means Sun Point, and it is one of the sunniest places on the island.

• Seaside: Close to Praia da Ponta do Sol, a pebble beach.
• Hillside Accommodations: Higher up, with views over the ocean.

6. São Vicente – Best for Nature Lovers São Vicente is on the north coast, between the mountains and the sea, and is known for its lava caves.

• Village Center: Close to caves, museums, and local spots.
• Mountain Retreats: Higher up, with valley views.

7. Porto Moniz – Best for the Natural Pools Porto Moniz is on the north coast and is known for its volcanic natural pools.

• Near the Natural Pools: Easy access to the pools and nearby restaurants.
• Hilltop Locations: Higher up, with coastal views.

8. Ribeira Brava – Best for a Small-Town Base Ribeira Brava is on the south coast, 14 km west of Funchal. The town is built around a small bay with a pebble beach and a promenade, and the 15th-century Church of São Bento is in the center.

• Near the Town Center: Convenient for shops, the beach, and local attractions.
• Inland Villages: Rural accommodations away from the coast.

9. Caniço – Best for a Base Near Funchal Caniço is on the southeast coast, about 6 km from Funchal by the fast road and 12 km by the old road.

• Near Garajau: Close to the Cristo Rei statue and beaches.
• Caniço de Baixo: Coastal neighborhood with sea views.

Bonus Areas to Consider:

• Porto da Cruz: On the northeast coast below the Penha d’Águia rock, popular with surfers and hikers.
• Porto Santo: Known for its sandy beaches, and reached by ferry or a short flight.
• Santana: Known for its traditional thatched-roof houses and for being close to the Laurisilva forest.

Price Comparison

Rooms for two people in EUR

The Most Exclusive Stays in 2026

Reid’s Palace, A Belmond Hotel

Reid’s Palace, a Belmond Hotel, is on the cliffs above the Atlantic, 1.8 km from Funchal, in its own gardens. It has been open since 1891.

The hotel has 126 rooms and suites, including the Churchill and Bernard Shaw suites, heated pools and a platform for swimming in the sea. Afternoon tea is served on the terrace. William, which held a Michelin star in the 2025 guide, is the fine-dining restaurant, and Ristorante Villa Cipriani serves Italian food.

There are also tennis courts, botanical tours, sunrise hikes and a spa with treatments inspired by Madeira’s natural surroundings. The hotel hosts events. At 554€ for two it is the most expensive hotel on this list, with a 9.6 rating.

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Les Suites at The Cliff Bay - PortoBay

Les Suites at The Cliff Bay is a five-star hotel with 23 suites and views of Funchal Bay and the Atlantic. It has two historic buildings and a modern wing, linked by gardens, and an infinity pool.

The suites have private balconies, marble bathrooms, flat-screen TVs, free Wi-Fi and 24-hour room service. Avista has panoramic views, and Il Gallo d’Oro, at The Cliff Bay, has two Michelin stars. The Blue Lagoon and the Infinity Pool Bar serve lighter food.

There is direct sea access, a gym and a spa with a private suite, and guests can use all of The Cliff Bay’s facilities, including more pools and gardens. At 522€ for two it is the second most expensive hotel on this list, with a 9.6 rating.

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Terrabona Nature & Vineyards

Terrabona Nature & Vineyards is a wine estate on the north coast, in the Boaventura parish. The owners bought Quinta do Cardo with tourism in mind, and the vineyard that came with the land turned into an award-winning wine project. Its Terra Bona white has won bronze medals at the IWC and Decanter competitions in London.

Guests stay in villas among the vineyards, next to the Laurissilva forest, a UNESCO World Heritage site. The estate offers yoga sessions, private rooftop dinners and vineyard tours.

Other activities include birdwatching, painting, hiking and canyoning. At 390€ for two it has the highest rating on this list (9.8) and costs less than Reid’s Palace and Les Suites at The Cliff Bay.

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Quinta Jardins do Lago

Quinta Jardins do Lago is a boutique hotel on a hillside near Funchal, in an 18th-century estate that was once the residence of General Beresford during the Napoleonic Wars. It has 32 rooms and suites, all facing the gardens.

The botanical garden covers 2.5 hectares and has over 500 plant species. The Beresford Restaurant serves Madeiran and international food in a historic setting, and the Colombo Bistro is by the pool. Other facilities are a heated pool, a gym, a croquet lawn and a library.

At 371€ for two it has the same 9.6 rating as Reid’s Palace and costs 183€ less.

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Savoy Palace - The Leading Hotels of the World

Savoy Palace is a five-star hotel and a member of The Leading Hotels of the World. It is on Avenida do Infante in the Lido area of Funchal, about a 10-minute walk from the Old Town.

Rooms range from ocean-view rooms to larger suites. The restaurants include Galáxia Skyfood and Terreiro, which focuses on local flavors.

The Laurea Spa is inspired by Madeira’s Laurissilva forest and has a heated pool and wellness facilities. There is also a gym.

The hotel has venues for weddings, events and meetings. At 306€ for two it costs less than Reid’s Palace, Les Suites, Terrabona and Quinta Jardins do Lago, and it is rated 9.2.

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Barceló Funchal Oldtown

Barceló Funchal Oldtown is a five-star hotel in Funchal, near Funchal Cathedral and Avenida do Mar, with views over the ocean. It occupies six restored seventeenth-century buildings, including the Oliveira Bordados Enmaderienses factory and the old residence of the Blandy family.

The interiors refer to local embroidery and wicker basketry. Rooms have city or sea views. The rooftop has a heated outdoor pool with ocean and city views, and the B-Heaven Rooftop Bar and the Lobby Bar serve international dishes and local specialties.

There are meeting spaces, an outdoor rooftop venue, a gym and a digital wellness program. At 274€ for two it is rated 8.9, the lowest rating on this list, the same as Saccharum.

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The Cliff Bay - PortoBay

The Cliff Bay is a PortoBay five-star hotel on a natural promontory with views over Funchal Bay and direct sea access.

It was renovated in 2021, and its restaurant Il Gallo d’Oro has two Michelin stars. There are three outdoor pools, an outdoor jacuzzi and gardens, and an ESPA spa with eight treatment rooms, a Turkish steam bath and a relaxation area. The hotel is on Estrada Monumental, close to Funchal’s seafront promenade and shopping areas. At 259€ for two it is rated 9.4 and costs 263€ less than Les Suites at The Cliff Bay.

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Saccharum - Resort and Spa

Saccharum is a five-star resort in Calheta with a modern design built around sustainability. It has sea and mountain views.

The eco-conscious rooms range from the Side Ocean Suite to the SPE Design Suite. The Ayurveda-inspired Saccharum Spa has an infinity pool, a sauna and sensory showers, and there is a gym.

The Alambique Restaurant serves fine dining, Engenho has a buffet, and the Fly Lounge Bar serves sunset cocktails. At 243€ for two it has an 8.9 rating, the same as Barceló Funchal Oldtown, which costs 31€ more.

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Albatroz Beach & Yacht Club

Albatroz Beach & Yacht Club is a five-star hotel in Santa Cruz, on the east coast, about 17 km from Funchal and close to the airport. The main building has fifteen rooms, Premium Rooms and Junior Suites of 44 square meters, each with a private balcony facing the Atlantic and the Desertas Islands. The decor is nautical, with casquinha wood and traditional Portuguese tiles.

The Superior Suite and Premium Suite are 95 and 120 square meters, with large living areas and several balconies. The refurbished Manor House has five more rooms of 25 to 35 square meters, some facing the ocean and some the gardens.

The hotel has a restaurant with ocean views, natural seawater pools, a heated freshwater pool, gardens, a tennis court, a spa and a gym. At 198€ for two it has the same 9.6 rating as Reid’s Palace and costs 356€ less.

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Vi Naturae Glamping

Vi Naturae is a glamping site that its listing places in one of Madeira’s natural reserves, 600 meters above sea level.

Each unit has a private bathroom with a shower, towels and toiletries, and a kitchen with a microwave and a mini fridge.

Breakfast is delivered to the unit. There is free Wi-Fi, cable TV, air conditioning in all units and a heated infinity pool with views of the Atlantic. At 160€ for two it is the cheapest hotel on this list, with a 9.5 rating.

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