In a nutshell
- Overall, it doesn’t really matter where to stay in Madeira Island, especially if you’re traveling by car in Madeira. The island is small, and getting around by car is easy.
- You’ll find the biggest choice of hotels in the capital, Funchal, which is also the perfect base for excursions. Our hotel tip: Three House Hotel.
- If you are looking for more peace and nature, it is better to book accommodation on the north coast. Our hotel tip: Quinta Vale Vitis.
- Most of Madeira’s beaches are located in the towns along the south coast. Our hotel tip: Estalagem da Ponta do Sol.
Where to Stay in Madeira?
You basically have two options for where to stay in Madeira.
- You book one accommodation for your entire stay (most popular)
- You change your accommodation and stay in different places (we only recommend this if you are there for longer than a week)
These are our tips for the best areas to stay in Madeira
- Funchal: The capital is the best starting point for day trips, as it is well-connected to all attractions.
- North coast of Madeira: The rugged coast of the quiet north is perfect for relaxing.
- South coast of Madeira: In the south you will find the most beaches and the perfect mix of city and nature.
The best areas to stay in Madeira on a map at a glance
For a quick overview, here’s a map of the best areas to stay in Madeira.

Where to Stay in Funchal

Funchal is the perfect base for excursions in Madeira and ideal for first-time visitors to the island.
In Funchal, you will find by far the most hotels on the island. From here you can easily get to all the attractions in Madeira and have the largest selection of restaurants and nightlife options.
If you are planning to book guided hikes or tours during your trip, be sure to stay in Funchal. Almost all tours start here. Funchal is also the only place on the island that is well-connected by bus. So, it is the best area to stay, if you want to explore Madeira without a car.
Funchal itself also has many sights to offer, like the cable car, basket sledging and the beautiful old town.
Pros of accommodation in Funchal:
- Super connected to the whole island
- Perfect starting point for day trips
- Many hotels, bars and restaurants
- You can get to the airport quickly
Cons of accommodation in Funchal:
- Very touristy and busy
- You don’t stay in the nature for which Madeira is so famous
Our hotel recommendations for Funchal
We love the Three House Hotel. The location in the center of Funchal is fantastic and the roof terrace with pool even more so. The rooms are also totally stylish and very charmingly designed.
Where to Stay on the North Coast of Madeira

The north of Madeira is ideal for you if you’re looking for a quiet area to stay and want to do a lot of hiking in the nature
There are no large towns in the north, only small villages surrounded by high, green cliffs. The north coast is less touristy than the south and is particularly popular with surfers and outdoor enthusiasts.
Beautiful places to stay in the north are Porto Moniz, Santana or São Vicente. However, as there are only a few hotels in most towns in Madeira, it is best to decide on accommodation and not by location.
In the north, you will mainly find apartments.
Pros of accommodation on the north coast:
- Fantastic views of the cliffs
- Quiet location and great for couples
- The towns are very authentic
Cons of accommodation on the north coast:
- There are no big cities
- Little choice of hotels and little infrastructure
Our hotel recommendations for the north coast of Madeira
The Quinta Vale Vitis is a real insider tip for accommodation on Madeira. From the location in the pretty village of São Vicente to the facilities with pool, sauna and views of the mountains, everything is just amazing.
Aqua Natura Bay is located right next to the natural pools in Porto Moniz – ideal if you love to swim.
Where to Stay on the South Coast of Madeira

If you want to combine sightseeing with a beach vacation, the south coast of Madeira is the best area to stay.
The south of Madeira is generally busier than the north. The towns are larger, there are more hotels and the infrastructure is better. You can also get to Funchal quickly from the towns in the south.
Two nice towns to stay in are Machico and Calheta – there are man-made sandy beaches here. Natural pebble beaches can be found in Caniço and Ponta do Sol.
When looking for a hotel on the south coast, it is also better to look for the hotel rather than the town – the choice of accommodation is larger than in the north, but still not huge.
Pros of staying on the south coast of Madeira:
- You can get to Funchal and the airport quickly
- There are some beautiful beaches
- Good selection of hotels
- You stay in a quiet area and yet not far from the action
Cons of accommodation on the south coast of Madeira:
- Longer travel time to some sights
- The south is more touristy than the north
Our hotel recommendations for the south coast of Madeira
The Modern & Recycled Guest House offers affordable accommodation in Machico, just a short distance from the beach. The concept is totally sustainable and there is a large kitchen.
A beautiful luxury hotel on Madeira is the Saccharum in Calheta. With a pool, rooftop terrace, restaurant, and gym, this 5-star hotel offers everything you could wish for on a perfect vacation.
These were our best tips for where to stay in Madeira.
Where did you stay in Madeira? Can you recommend a good hotel in Madeira? Please let us know in the comments!