In a nutshell
- You can honestly stay pretty much anywhere on Madeira — especially if you’re exploring Madeira by rental car. The island is small and everywhere is reachable by car within a reasonable time.
- The biggest hotel selection is in the capital, Funchal — and it’s also the best base for day trips across the island. Our top pick: Three House Hotel.
- Want peace, quiet, and proper nature? Head to the north coast for an authentic, laid-back stay. Our top pick: Quinta Vale Vitis.
- Most of the swimming beaches on Madeira are along the south coast — the best choice if beach time is a priority. Our top pick: Estalagem da Ponta do Sol.
Where Should You Stay on Madeira?
You basically have two options for accommodation during your vacation on Madeira.
- You book one place to stay for your entire trip (most popular)
- You switch accommodations and stay in different locations (we only recommend this if you’re there for more than a week)
Here are our tips for the best areas to stay on Madeira:
- Funchal: The capital is the best base for day trips — it’s super well connected to all the highlights on the island.
- North Coast of Madeira: The rugged, peaceful north is perfect for unwinding in nature.
- South Coast of Madeira: The south has the most beaches and the best mix of sightseeing and relaxation.
Overview of Areas on a Map
For a quick overview, here’s a map of Madeira showing where we recommend staying.
Staying in Funchal
Funchal is the ideal base for day trips on Madeira — and especially great for first-time visitors.
In the capital city of Funchal, you’ll find by far the most hotels on the island. From here, you can easily reach all the top sights on Madeira and you’ll have the widest choice of restaurants and nightlife.
If you’re planning to book guided hikes or tours during your trip, it’s best to stay in Funchal. Almost all tours depart from here, and it’s the only place on the island with reliable bus connections.
Funchal itself has plenty to keep you busy, including the cable car, toboggan sled rides, and a beautiful historic center.
Read all our tips for things to see and do in Funchal
Advantages of staying in Funchal:
- Super well connected to the entire island
- Perfect base for day trips
- Lots of hotels, bars, and restaurants
- Quick and easy access to the airport
Disadvantages of staying in Funchal:
- Very touristy and busy
- You miss out on the natural surroundings that make Madeira so special
Our Hotel Recommendations for Funchal
We love the Three House Hotel. The location right in the heart of Funchal is fantastic, and the rooftop terrace with pool is even better. The rooms are seriously stylish and full of character — a true boutique hotel in Funchal.
Good and affordable
Better
Luxurious
Staying on the North Coast of Madeira
The north of Madeira is ideal if you want to stay surrounded by nature and really switch off.
There are no large cities up here — just small towns tucked between tall, green cliffs. The north coast is less touristy than the south and especially popular with surfers and outdoor enthusiasts. It’s also a great base for hiking on Madeira.
Great spots to stay in the north include Porto Moniz, Santana, and São Vicente. Since most towns on Madeira have only a handful of hotels, your best approach is to pick based on the accommodation itself rather than the exact location.
In the north, you’ll mainly find apartments and vacation rentals.
Advantages of staying on the north coast:
- Stunning views of the cliffs
- Peaceful, laid-back atmosphere
- Authentic, unspoiled towns
Disadvantages of staying on the north coast:
- No large cities nearby
- Limited hotel selection and less infrastructure overall
Our Hotel Recommendations for the North Coast of Madeira
The Quinta Vale Vitis is a real under-the-radar find and a wonderful boutique hotel on Madeira. Everything just works here — from the location in the charming town of São Vicente to the property with a pool, sauna, and mountain views.
The Aqua Natura Bay sits right next to the natural pools in Porto Moniz — ideal if you plan to spend a lot of time in the water.
Good and affordable
Staying on the South Coast of Madeira
The south coast is your best bet if you want to combine sightseeing with beach time.
Overall, there’s more going on in the south than in the north. The towns are larger, there are more hotels, and the infrastructure is better. You can also get to Funchal quickly from most spots along the south coast.
Two standout towns to base yourself in are Machico and Calheta — both have artificially created sandy beaches. For natural pebble beaches, check out Caniço and Ponta do Sol.
Read our tips for the best beach hotels on Madeira
On the south coast too, you’re better off searching by hotel rather than by town — the selection is bigger than in the north, but still not huge.
Advantages of staying on the south coast of Madeira:
- Quick access to Funchal and the airport
- Some lovely beaches right on your doorstep
- Good range of quality hotels
- Peaceful setting without being completely off the grid
Disadvantages of staying on the south coast of Madeira:
- Longer travel times to some sights in the north
- More touristy than the north coast
Our Hotel Recommendations for the South Coast of Madeira
The Modern & Recycled Guest House is a great affordable option in Machico, close to the beach. The whole concept is built around sustainability and there’s a large shared kitchen — really good value.
If you’re after a splurge, the Saccharum in Calheta is one of the finest luxury hotels on Madeira. This five-star property has everything — pools, a rooftop terrace, a restaurant, and a fitness center.
