Funchal is Madeira’s elegant capital, a city of gardens, cobbled streets, wine lodges and ocean views, with the island’s best restaurants and the cable car up to Monte. It has some of the most famous hotels in Europe, alongside charming small hotels full of character.
These ten hotels are the ones our guests rate most highly.
You’ll find on this page
- Quick verdicts and a comparison table of every hotel
- Ten top Funchal hotels
- Which part of Funchal?
- Answers to the questions we’re asked most
- Live prices with flights and transfers in the search box at the end of the page
At a glance: compare the hotels
| Hotel | Where | Stars | Board | TripAdvisor | Adults only |
|---|---|---|---|---|---|
| Quintinha de Sao Joao | Funchal, Madeira | 5★ | Bed and Breakfast | 4.7/5 | No |
| Casa Velha do Palheiro | Funchal, Madeira | 5★ | Bed and Breakfast, Half Board | 4.7/5 | No |
| Reid’s Palace A Belmond Hotel | Funchal, Madeira | 5★ | Bed and Breakfast | 4.7/5 | No |
| Suite Hotel Eden Mar | Funchal, Madeira | 4★ | Half Board | 4.7/5 | No |
| Porto Mare Hotel | Funchal, Madeira | 4★ | Bed and Breakfast, Half Board | 4.7/5 | No |
| PortoBay Santa Maria | Funchal, Madeira | 4★ | Half Board | 4.7/5 | Yes |
| Royal Savoy | Funchal, Madeira | 5★ | Bed and Breakfast, Full Board, Half Board | 4.6/5 | No |
| Quinta da Bela Vista | Funchal, Madeira | 5★ | Bed and Breakfast, Half Board | 4.6/5 | No |
| SE Boutique Hotel | Funchal, Madeira | 4★ | Bed and Breakfast, Half Board | 4.6/5 | No |
| Baia Azul Hotel | Funchal, Madeira | 4★ | Bed and Breakfast, Full Board, Half Board | 4.6/5 | No |
Star ratings are official; TripAdvisor scores were correct when we last checked and can change. Board options vary by room and date.
Quick verdicts
Our top picks
1. Quintinha de Sao Joao
- Funchal, Madeira
- 5-star
- Bed and Breakfast
- TripAdvisor 4.7/5
Five-star Quintinha de São João is small and friendly, with traditional charm and excellent service, great for couples.
Best for: Boutique charm
2. Casa Velha do Palheiro
- Funchal, Madeira
- 5-star
- Half Board
- TripAdvisor 4.7/5
Five-star Casa Velha do Palheiro is a Relais & Châteaux hotel set in botanical gardens, with individually designed rooms, and it is great for golf.
Best for: Gardens and golf
3. Reid’s Palace A Belmond Hotel
- Funchal, Madeira
- 5-star
- Bed and Breakfast
- TripAdvisor 4.7/5
Five-star Reid’s Palace, a Belmond hotel, has a stunning location, exceptional service and Michelin-starred dining.
Best for: A legendary stay
4. Suite Hotel Eden Mar
- Funchal, Madeira
- 4-star
- Half Board
- TripAdvisor 4.7/5
Suite Hotel Eden Mar has a modern design, excellent dining options and beautiful gardens.
Best for: Suites
5. Porto Mare Hotel
- Funchal, Madeira
- 4-star
- Half Board
- TripAdvisor 4.7/5
Porto Mare Hotel has an excellent spa, a stunning location and modern, spacious rooms.
Best for: Spa
6. PortoBay Santa Maria
- Funchal, Madeira
- 4-star
- Half Board
- TripAdvisor 4.7/5
- Adults only
Adults-only PortoBay Santa Maria has a prime location in the old town with stunning sea views.
Best for: Old town
7. Royal Savoy
- Funchal, Madeira
- 5-star
- Full Board
- TripAdvisor 4.6/5
Five-star Royal Savoy has beautiful ocean views, attractive gardens, refined service and an excellent spa.
Best for: Ocean views
8. Quinta da Bela Vista
- Funchal, Madeira
- 5-star
- Half Board
- TripAdvisor 4.6/5
Five-star Quinta da Bela Vista has a stunning location, lots of character and excellent service.
Best for: Quinta character
9. SE Boutique Hotel
- Funchal, Madeira
- 4-star
- Half Board
- TripAdvisor 4.6/5
SE Boutique Hotel is about 120 metres from Funchal Cathedral, with a terrace bar with panoramic views.
Best for: City centre
10. Baia Azul Hotel
- Funchal, Madeira
- 4-star
- Full Board
- TripAdvisor 4.6/5
Baia Azul Hotel has stunning sea views, a spacious pool area, a bright and modern style and a courtesy bus to Funchal.
Best for: Pool and views
Which part of Funchal?
The old town and centre: the cathedral, markets, the cable car and restaurants on your doorstep. The Lido and hotel zone: west of the centre, with seafront promenades, big pools and ocean views. The hills and quintas: historic manor houses in gardens above the city, peaceful with a short ride into town. Funchal is about 20 to 25 minutes from the airport.
How we chose these hotels
We looked at every hotel we sell in Funchal and chose those our guests rate most highly. We excluded hotels already featured in our other guides, so you get fresh choices. Every hotel here is well rated by our guests on TripAdvisor, and every one can be booked with us as an ATOL-protected package with flights and transfers. Prices change daily, so use the search box at the end of this page for live availability, or ask a Travel Designer for a tailored shortlist.
Things to do
Ride the cable car to Monte and toboggan back down in a wicker sledge, explore the Mercado dos Lavradores, visit the Monte Palace Tropical Garden and the Botanical Garden, taste Madeira wine at a historic lodge, and walk a levada above the city.
Frequently asked questions
Where is the best place to stay in Funchal?
The old town for atmosphere, the Lido for pools and sea views, the quintas for peace.
Is Funchal walkable?
The centre is, but it is hilly; many hotels run shuttle buses.
How far is Funchal from the airport?
About 20 to 25 minutes.
Is Funchal good in winter?
Yes, mild at around 19 to 20 °C, with famous New Year’s Eve fireworks.
Find your Funchal holiday
Search live prices with flights and transfers, all ATOL protected, or ask a Travel Designer to compare these hotels.
Keep planning
- All Madeira hotels
- Portugal holidays
- Where to stay in Madeira
- Best hotels in Madeira
- Christmas and New Year in the sun
Updated October 2026. Hotels can be booked as ATOL-protected packages with flights and transfers through Travelisto.
