In a nutshell
- Planning to stay in a 5-star hotel on Madeira? You’re in the right place. We’ve handpicked the most beautiful Madeira luxury hotels so you can book with confidence.
- Most of the best luxury resorts are in the capital Funchal, but we’ve also included top picks in other towns across the island.
- Our absolute top recommendations are the Savoy Palace and Reid’s Palace — both will make you feel like royalty.
Savoy Palace
The Savoy Palace is a luxury hotel in the truest sense. Every room is decorated in a stylish and lavish way, and you get a seriously impressive amount of space. The double rooms and suites with ocean views are especially stunning — an absolute dream!
But it’s not just the rooms that shine. The entire hotel is top-notch, with multiple restaurants, a huge pool, a wellness center, a fitness center, and so much more. You really won’t be missing a thing.
The location in Funchal is another big plus. You can reach the historic center quickly, but you’re not right in the thick of it. Private ocean access is included too — a real bonus.
The Cliff Bay
The Cliff Bay is an elegant 5-star hotel just outside Funchal, right on the ocean. The outdoor area with multiple pools and hot tubs is fantastic — and you can reach the sea directly via a private entrance from the hotel.
The breakfast buffet and restaurants leave nothing to be desired either. Everything we tried was absolutely delicious.
Rooms are decorated in a cozy yet elegant style, and the beds are seriously comfortable. The large balconies are a real standout — especially if you book a room with ocean and city views.
Reid's Palace
Reid’s Palace is one of the most prestigious luxury resorts on Madeira. Perched on a cliff near Funchal, the panoramic views from the sprawling hotel grounds are absolutely breathtaking.
Outside, you’ll find a large outdoor pool, a beautiful garden, private ocean access, and tennis courts. Inside, it’s equally impressive — the wellness area and fitness center mean you can easily fill a whole day without leaving the property.
In the evening, you’re spoiled for choice with four restaurants. The William Restaurant has even earned a Michelin star — worth booking ahead.
The rooms are all superbly appointed and decorated in light, airy tones. A complimentary minibar is a nice touch too.
Saccharum - Resort and Spa
The Saccharum is one of our top picks for a beachfront hotel on Madeira. It sits right on the beach at Calheta — one of the few sandy beaches on the island.
We especially love the room design: clean, refined, with some unique touches by a Madeiran artist that give the place real character.
The rooftop terrace with an infinity pool is another major highlight. Mornings bring a wonderful breakfast buffet, and in the evenings you can choose between the buffet or an à la carte restaurant.
Book Saccharum – Resort and Spa
Barceló Funchal Oldtown
As the name suggests, the Barceló sits right in the heart of Funchal’s old quarter. It’s a luxurious boutique hotel on Madeira with a truly stylish interior.
Rooms and bathrooms are beautifully designed and the beds are incredibly comfortable. You’re guaranteed to feel right at home.
Beyond the rooms, the rooftop terrace with a pool overlooking Funchal is a real treat — and the varied breakfast is a great way to start the day.
One thing worth knowing: the Barceló Funchal Oldtown is a relatively affordable luxury option on Madeira. If you want the five-star feel without the eye-watering price tag, this is the place. It’s also perfectly positioned if you’re planning a road trip around the island.
Albatroz Beach & Yacht Club
The Albatroz Beach & Yacht Club is located very close to the airport in the town of Santa Cruz. Airplane noise is barely noticeable — and instead you get the fun of watching planes take off and land over the ocean.
Our personal favorite is the pool right on the ocean’s edge — the views are seriously breathtaking, and you can jump straight from the pool area into the sea.
Those stunning Atlantic vistas carry through to the rooms and the beautiful garden grounds as well. Mornings start with a delicious breakfast, and evenings wind down at the hotel’s own restaurant.
If you’re planning to play golf on Madeira, the Albatroz is a smart pick — a golf course is located right nearby.
Book Albatroz Beach & Yacht Club
Quinta Jardins do Lago
The Quinta Jardins do Lago isn’t a traditional hotel — it’s more of a grand country estate with its own botanical garden and a wonderful pool area.
It sits on a hill above Funchal. A shuttle bus runs into the city, and parking on-site is free — handy if you’re renting a car to explore the island.
The service here is fantastic — always warm and genuinely helpful. Mornings bring a delicious breakfast, and after a day of sightseeing on Madeira you can unwind in the hot tub.
The rooms, set within a house typical of Madeiran architecture, are very quiet and cozily furnished — exactly what you need to properly recharge.
