Portugal

The Best Hotels in Funchal, Madeira: Grand Classics and Boutique Gems

Discover Reid's Palace A Belmond Hotel a 5-star hotel in Portugal
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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

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

Quintinha de Sao Joao, Funchal
  • 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

See Quintinha de Sao Joao →

2. Casa Velha do Palheiro

Casa Velha do Palheiro, Funchal
  • 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

See Casa Velha do Palheiro →

3. Reid’s Palace A Belmond Hotel

Reid’s Palace A Belmond Hotel, Funchal
  • 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

See Reid’s Palace A Belmond Hotel →

4. Suite Hotel Eden Mar

Suite Hotel Eden Mar, Funchal
  • 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

See Suite Hotel Eden Mar →

5. Porto Mare Hotel

Porto Mare Hotel, Funchal
  • 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

See Porto Mare Hotel →

6. PortoBay Santa Maria

PortoBay Santa Maria, Funchal
  • 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

See PortoBay Santa Maria →

7. Royal Savoy

Royal Savoy, Funchal
  • 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

See Royal Savoy →

8. Quinta da Bela Vista

Quinta da Bela Vista, Funchal
  • 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

See Quinta da Bela Vista →

9. SE Boutique Hotel

SE Boutique Hotel, Funchal
  • 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

See SE Boutique Hotel →

10. Baia Azul Hotel

Baia Azul Hotel, Funchal
  • 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

See Baia Azul Hotel →

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.

Ask a Travel Designer →

Keep planning

Updated October 2026. Hotels can be booked as ATOL-protected packages with flights and transfers through Travelisto.