Beyond Madeira’s spectacular scenery and famously pleasant weather, this lush green island is also known for its excellent places to stay. We’ve put together a list of standout hotels in special settings, most of them with beautiful views as well. Most of the hotels we chose are in the capital, Funchal, which is the best base for exploring Madeira.
Still, we also carefully selected several hotels in some of the island’s most appealing towns and villages, where you can wake up high above a gorge hundreds of feet deep, swim in the sea or in natural ocean pools, head out on a whale-watching cruise, or stroll through vineyards that produce Madeira’s famous wine. Each place has its own character, and each hotel comes with its own style of pampering. Wherever you stay, Madeira’s warm and welcoming residents will greet you with a smile, because that’s simply the Madeira way.
12 Top-Rated Hotels in Madeira
1. Barceló Funchal Oldtown – Funchal
Barceló Funchal, part of the excellent Spanish hotel chain, is one of the island’s best-known places to stay. Its location right in the heart of the Old Town, near the cathedral, along with its elevated position and wonderful rooftop sea views, has made it one of the most sought-after and enjoyable hotels in Madeira’s capital.
This is a city hotel with modern, spacious rooms, and it would be hard to find a better location in Funchal. The rooftop pool is perfect for catching a little sun between visits to the Old Town’s landmarks, and the view from up there is stunning. It’s especially well suited to couples who want to be in the middle of it all—out sightseeing by day, then heading to restaurants, nightlife, or an evening stroll along the nearby promenade. The hotel is also a great fit for travelers not touring the island by car, even though having one is usually a good idea, and instead joining organized day trips from the city center.
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2. The Cliff Bay – PortoBay – Funchal
This 5-star resort sits along the strip of major hotels west of central Funchal. Built on a corner cliffside site, it enjoys sweeping panoramic views and is one of the finest waterfront hotels in Funchal. The property features several indoor and outdoor pools, along with a large and excellent spa. Gardens surround the hotel, and there is also access down to the ocean, with several piers extending into the water.
Spacious and indulgent, the hotel’s public areas are thoughtfully designed and beautifully maintained. In addition to the main hotel restaurant, there is also a fine-dining restaurant with two Michelin stars. The hotel is especially well suited to couples, though families can stay here comfortably too. Since it’s laid out as a resort, you could easily spend your whole stay without leaving—and honestly, you may not want to.
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3. Eira do Serrado – Hotel & Spa – Curral das Freiras in the mountains
Although Madeira’s mountains are famous throughout Europe, there aren’t many hotels in them. Madeira is small, and even the mountain peaks are never very far away, so most hotels are located near the coast and the main population centers. Eira do Serrado is just half an hour from Funchal, near the village of Curral das Freiras (the village above the Valley of the Nuns). Staying here is a rare chance to experience Madeira’s mountains from the moment you open your eyes in the morning.
This 4-star hotel feels more like a mountain ski lodge than a hotel on an island. It has pools, a spa center, and balconies in every room overlooking the mountains, deep ravines, and surrounding forests. That’s part of Madeira’s appeal: this small green island is full of contrasts. One moment you’re facing the endless ocean, and the next you’re high on a mountain above a forested gorge hundreds of feet deep. There are several viewpoints and hiking trails around the hotel, making it an ideal stop for part of your trip if you love hiking or simply prefer natural, unusual places.
Click here to check room availability and rates at Eira do Serrado – Hotel & Spa…
4. Aqua Natura Madeira – Porto Moniz
The town of Porto Moniz, at the island’s northwestern tip, is famous for its natural ocean pools. Aqua Natura sits right above them, with immediate access to their clear waters. This 4-star hotel is simply designed in light tones and is very comfortable. The views from the hotel—out over the endless ocean and the rugged rock formations at the edge of the island—are worth savoring every minute, especially when you’re dining in the hotel restaurant overlooking them. The rooms are spacious and spotless, and every one of them faces the sea. If you’ve decided to stay in far-flung Porto Moniz, this is the place to do it. For most of the year, rates are also very reasonable.
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5. Savoy Palace Hotel – Funchal
This is one of Funchal’s largest and best-known 5-star hotels. The Savoy property stands at the beginning of the hotel strip west of central Funchal, a short distance from the casino and on Av. do Infante, which leads straight into central Funchal—about a 15-minute walk or 4-minute drive. It’s a modern hotel maintained to a very high standard, with large, spacious rooms that work well for both families and couples.
There are several pools, including a very large outdoor one lined with long sun loungers, plus a stunning rooftop infinity pool. The hotel also has an excellent spa, and the breakfasts are varied and wonderful. It’s one of the best places to stay during a vacation in Madeira: close to the center, yet far enough away to make parking easy, while also functioning as a full resort. That means part of your trip can be spent simply relaxing by the pool and enjoying the beautiful rooms.
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6. Saccharum – Resort and Spa – Calheta
The town of Calheta, a little more than half an hour west of Funchal, is known for two things: its sandy beach and its role as a center for sugar production and processing. The town has a rum and sugar factory that gives off a sweet aroma you can smell throughout the area, especially in the mornings. That’s why, when you arrive at the hotel, you’ll notice that many of the design motifs are inspired by sugarcane.
The hotel stands above the beach, with the marina and sandy shore to one side, while behind it rises a tall reddish cliff typical of Madeira’s south coast. This 5-star luxury hotel, part of the Savoy collection, is best suited to couples. It has an infinity pool overlooking the blue Atlantic, as well as a spa center with an indoor pool. The hotel is large, the rooms are spacious, and it works beautifully for a vacation that combines time on the beach and by the pool with outings around the island.
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7. Calheta Beach – All-inclusive – Savoy Signature – Calheta
This hotel sits right above Calheta’s famous sandy beach. It’s a 4-star property managed by the Savoy group and complements the chain’s other hotel on the same beach, Saccharum, which is a luxury property aimed mainly at couples. This one is the ideal choice for families staying on Calheta Beach.
It operates as an all-inclusive hotel at reasonable rates and is essentially a full resort spread over a fairly large area. That’s why so many families choose to stay here for at least part of their time in Madeira. It’s not only for families, though—couples looking for a carefree vacation also come here, enjoying the spa services as well as the special beach just below. The hotel has a large outdoor pool and an indoor pool. As for dining, there are restaurants in addition to the main dining room, so there’s enough variety to eat something different each day. This is a hotel worth staying at for several days, and from here it’s easy to head out to any part of the island.
Click here to check room availability and rates at Calheta Beach – All-inclusive – Savoy Signature…
8. Reid's Palace, A Belmond Hotel, Madeira – Funchal
This luxury Belmond property sits at the start of the resort strip stretching west of central Funchal. Set on a cliff in a prime waterfront position, it is one of Madeira’s best-known and most prestigious hotels. Its special appeal comes from its perch on the edge of the cliff, which creates a sense of separation from the noise of the outside world. At the same time, it’s still only a 5-minute drive from central Funchal. The hotel has a classic style, and while the rooms are spacious, they are not especially large. Here, the emphasis is on the public spaces, especially the pools and gardens with direct ocean views.
It is best suited to couples who want to indulge and experience the kind of old-world elegance that drew Europe’s upper classes to vacation in Madeira in the early 20th century. A stay at Reid's Palace offers dramatic scenery, impeccable service, classic atmosphere, and easy access to central Funchal all at once.
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9. Pestana Fisherman Village – Câmara de Lobos
Winston Churchill himself loved this picturesque fishing town, about 15 minutes west of Funchal. Its small harbor, filled with colorful boats and watched over by the island’s highest cliff, charmed the great statesman—and it will likely charm you too. Right in the heart of town, close to the little restaurants and bars, the Pestana group opened this 4-star hotel. Though fully urban in style, it still manages to add a touch of seaside vacation mood, thanks to a pool overlooking the harbor and the ocean. You can sit there feeling as if you’re on a remote island, then moments later stroll down to the narrow old street below, just a short distance from the fishermen’s docks, where nets are still woven by hand for the next trip out to sea.
The rooms are modern, simply and pleasantly designed, and very clean. Staying here in Câmara de Lobos gives you a more local, down-to-earth feel than staying in Funchal. If you love fish and restaurants that still feel wonderfully old-fashioned, you won’t regret spending a night or two in this lovely little harbor town, with Funchal and other attractions in Madeira just a short distance away.
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10. Albatroz Beach & Yacht Club – Santa Cruz
This 5-star hotel is located in the town of Santa Cruz, which is also home to Madeira’s airport and lies just a 20-minute drive from the capital, Funchal. The hotel is tucked onto a small headland and feels quite separate from its surroundings, yet it’s easy to reach from the highway and has parking. It faces the sea and the views, so you barely notice that the road and airport are behind it; instead, the feeling is more like being on a private island.
The rooms are large, spacious, and sea-facing. Beyond the wonderful service, the highlight here is the hotel’s private 400-meter stretch of shoreline. At one end, below the cliff, there’s a pool built just above the waterline, and the experience of swimming there—or simply sitting beside it—is truly priceless. There is another pool beside the hotel as well, along with a tennis court and gardens, all seemingly suspended above the sea on the cliffside. The hotel also has an excellent restaurant. It’s particularly well suited to couples, though families with teenagers can enjoy it too. The views, the sense of being cut off from the world, and the staff’s warm, friendly service all create a freeing, deeply relaxing atmosphere.
Click here to check room availability and rates at Albatroz Beach & Yacht Club …
11. Hotel Quinta Do Furao – Santana
This is one of the hotels with the most beautiful views in Madeira. There aren’t many places like it on Madeira that combine maximum comfort with a rural feel and a true waterfront setting. This 4-star hotel is a high-quality property with spacious, bright rooms. It is located near the town of Santana in the north of the island, an area known for its vegetation-covered cliffs dropping dramatically into the sea. Quinta Do Furao was built above one of these cliffs, on flat land surrounded by vineyards. That means you can begin the day with a stunning, almost primeval view, then head out for an easy walk among vineyards and rural homes behind the hotel on the way toward Santana.
The town itself is famous for its colorful thatched-roof houses, as well as its local wine. The hotel has a wine cellar where you can buy some of that wine, along with a wonderful spa offering relaxing treatments. Outside, there’s also a lovely elongated pool, and at the entrance you’ll find a large parking area. There is a restaurant on site too, so there’s no need to go into town unless you want to. If you decide to stay outside Funchal for all or part of your vacation, this hotel in Santana is one of the best options beyond the capital.
Click here to check room availability and rates at Hotel Quinta Do Furao…
12. Dreams Madeira Resort Spa & Marina – Caniçal
This new 5-star hotel is located west of the town of Caniçal. It sits on the São Lourenço Peninsula in the east of the island, the sunniest and warmest part of Madeira, so you can expect pleasant, warm weather here for most of the year. Caniçal is known as a departure point for whale- and dolphin-watching cruises, and from the marina below the hotel, it’s easy to do just that. The hotel lies outside town in a quiet area with a few paved squares, and the overall feel is peaceful and delightful. It’s large and spacious, with a very large outdoor pool, while down by the shore you can enjoy a natural seawater pool as well as a small beach.
The hotel is right beside the famous hiking route along the São Lourenço Peninsula, with its spectacular views. The rooms are spacious, clean, and comfortable, and there is also a restaurant on site, so you may not feel any need to leave. It works beautifully for both couples and traveling families, and the scenery around it only adds to the experience. There is parking at the hotel and in the surrounding area, so arriving by car is easy.
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