In a nutshell
- Funchal has a huge range of accommodation options. To save you the search, we’ve handpicked 7 of the best boutique hotels in Funchal — from adults-only hideaways to charming historic-center stays.
- Our readers’ favorite is the The Views Baia – Adults Only — the ocean panorama from the spa pool alone is worth it.
- For a wonderfully personal stay right in the old quarter, we’d point you straight to the Hotel Cajú — small, stylish, and great value.
The Views Baia - Adults Only
The Views Baia – Adults Only is rightfully the favorite among our readers when it comes to boutique hotels in Funchal. It’s simply stunning — and genuinely great value for the price.
What we love most is that you get incredible views of Funchal and the ocean from just about everywhere in the hotel. The pools in the spa area are especially great for soaking in those vistas.
The “Views” theme carries through to the rooms as well. Large windows, light colors, and plenty of natural light — you can’t help but feel right at home here.
To round out the full package, parking is free, there are two restaurants, and there’s even a fitness center. It’s about a 20-minute walk to the center of Funchal — with a slight uphill stretch on the way back.
Book The Views Baia – Adults Only
Three House Hotel
The Three House Hotel is our top pick among boutique hotels in Funchal if you’re planning lots of activities and day trips on Madeira. You’ll be staying right in the heart of the city, and parking at the hotel is free.
The Three House Hotel also offers mostly apartments with their own kitchens. If you’re not in the mood to head out to a restaurant after a long sightseeing day on Madeira, you can simply cook something and make yourself at home.
The rooftop pool is another real highlight. It’s the perfect spot to cool off on hot days and soak up the sun. There’s also a fitness center for those who like to stay active.
Hotel Cajú
The Hotel Cajú is a stylish boutique hotel on the edge of the historic center. The concept is very minimalist. There’s no unnecessary fuss, but personal service is never compromised.
The staff is incredibly warm, and that’s when you really notice the advantages of staying at a small hotel in Funchal.
Some of the rooms retain original stone walls, while the rest of the décor is modern and bright — a great mix!
Breakfast is served à la carte, and everything is made with fresh ingredients. For working up a sweat, there’s a well-equipped fitness center.
The value for money is spot on!
Sé Boutique Hotel
It’s hard to find a more central location in Funchal than the Sé Boutique Hotel. Situated right across from the cathedral in the heart of the old quarter, it’s a genuinely excellent place to stay in Funchal.
The rooms are bright, clean-lined, and totally inviting. The rest of the hotel offers a wonderful contrast with bold colors in true boutique style.
The sun terrace with its panorama over Funchal is wonderfully cozy. Make sure you also check out the wellness area — seriously worth it.
In the morning, a varied breakfast sets you up perfectly for the day, and in the evening you can sample traditional Portuguese cuisine at the restaurant.
Castanheiro Boutique Hotel
A true all-rounder among boutique hotels in Funchal is the Castanheiro Boutique Hotel. Its central location makes it easy to get anywhere on foot. At the same time, it sits slightly elevated on the hillside, so the views are fantastic.
The rooftop terrace is a real standout. It features a pool, jacuzzi, and sun loungers. If the weather doesn’t cooperate, you can treat yourself in the spa area.
The rooms are comfortably furnished and very well equipped. We’d recommend booking one with a balcony.
Start your mornings with a delicious breakfast, then head out well-fueled to explore the best attractions in Funchal.
Book Castanheiro Boutique Hotel
Pestana Quinta Perestrello
The Pestana Quinta Perestrello is a charming small hotel styled after a traditional Madeiran quinta.
The interior matches the concept perfectly: cheerful colors, yet simple and cozy — everything that captures the spirit of life on Madeira.
From the rooms you look out over the lovely garden with its outdoor pool and the sea beyond. Breakfast is served at the neighboring hotel. With 3 restaurants, you’ll also have plenty of options for lunch and dinner.
On a rainy day, you can relax in the indoor pool or the sauna. A fitness center and a common room for reading or playing billiards are also available.
Book Pestana Quinta Perestrello
Villa Quinta Torrinha Rooms
For a more luxurious small hotel experience in Funchal, the Villa Quinta Torrinha Rooms is a real under-the-radar find. It’s located outside the city center on the hillside — which means peace, quiet, and seriously good views.
You can choose from stylish double rooms, suites, and spacious apartments, all of which are superbly equipped.
What makes this hotel particularly special is its expansive grounds. There’s a garden and a large terrace where you can have breakfast with a view — we absolutely love it!
With an outdoor pool, fitness center, and wellness area, everything you could wish for on your Madeira vacation is taken care of.
