In a nutshell
- Looking for a truly special place to stay for your Madeira vacation? In this article, we’ll show you the 5 most beautiful boutique hotels on Madeira — personally picked by our team.
- Our top picks include the Sé Boutique Hotel in the heart of Funchal and the Escarpa near Ponta do Sol — with an infinity pool and stunning ocean views.
- We’ve also included a seriously special glamping spot that’s unlike anything else on the island — keep reading to find out more!
Sé Boutique Hotel
The Sé Boutique Hotel is right in the heart of Funchal — and it’s a seriously stylish city hotel. From here you can easily explore the sights of Funchal on foot, and it makes a great base for day trips around Madeira.
Breakfast is genuinely delicious, and up on the rooftop there’s a lovely terrace to unwind on. For total relaxation, you can even reserve the indoor pool all to yourself — a rare perk.
The rooms are decorated in bright, elegant colors, with plenty of unique furniture and thoughtful details throughout.
The value for money here is excellent too — you can often find an affordable room even at the last minute, which is a real bonus.
Escarpa - The Madeira Hideaway
The Escarpa is a beautiful small boutique hotel near Ponta do Sol — one of the most beautiful places on Madeira. It sits in a peaceful natural setting on a cliff right by the sea, which is why it also ranks among the top beach hotels on Madeira.
This adults-only property comes well-equipped with a hot tub and its own restaurant, and a delicious breakfast is included. The absolute standout, though, is the infinity pool with sweeping ocean views.
The rooms look gorgeous too — warm, light tones and charming designs. There are even full villas with private pools if you want to go all out.
We’d strongly recommend renting a car for this one so you can explore easily — and parking at the Escarpa is free.
Book Escarpa – The Madeira Hideaway
Quinta Vale Vitis
The Quinta Vale Vitis is a charming small hotel in the peaceful north of Madeira — specifically in the village of São Vicente.
We especially love the generous outdoor area with a garden, terrace, and an outdoor pool. The rooms are decorated in bright, nature-inspired tones and feel incredibly cozy.
A delicious breakfast and use of the sauna are both included in the price — and despite all that, the Quinta Vale Vitis is one of the more affordable Madeira boutique hotels on the island.
Cool extras include a communal area with a kitchen and on-site car rental. You really do have everything you need here for a road trip around Madeira.
Castanheiro Boutique Hotel
The Castanheiro is a fantastic all-around pick for your trip to Madeira. From the spacious rooms with plenty of room to spread out, to the rooftop terrace with a pool — everything hits the mark.
The service is top-notch too — incredibly helpful staff, always friendly and genuinely warm. You’ll feel right at home in this boutique hotel in Funchal.
Mornings start with a great breakfast buffet with plenty of variety, and dinner at the restaurant is absolutely delicious. They even put on themed dinner evenings from time to time, which is a fun touch.
A real highlight is the spa area with a sauna, massage services, and a Turkish bath — perfect after a day of hiking. And if you’ve still got energy to burn, there’s a small fitness room too.
Book the Castanheiro Boutique Hotel
Three House Hotel
The Three House is the perfect design hotel on Madeira if you’re planning lots of day trips around this beautiful European island. Its central location makes it a top pick for where to stay in Funchal, and there’s even free parking on site.
Since it’s an apart-hotel, you can self-cater in the apartments — but there’s also a restaurant if you’d rather not cook. In the morning, fresh croissants are delivered right to your door, and coffee and tea are available whenever you like.
When you get back in the evening, kick back on the rooftop terrace with pool, cocktail in hand. Honestly, that sounds pretty perfect.
Insider Tip: Vi Naturae Glamping
The Vi Naturae Glamping isn’t a classic small hotel — but it’s so special and unique that we simply had to include it.
You stay in tents that are set up just like proper hotel rooms, complete with a kitchenette and a private terrace.
The tents are perched on a cliff above the village of Paul do Mar, and the views are seriously stunning. Whether from your tent or the infinity pool, you get a breathtaking panorama of the ocean.
To top it all off, the hosts are incredibly warm and welcoming — and in the morning you’ll be treated to a delicious surprise breakfast. A truly memorable stay.
