Where to stay · Madeira · Portugal
Where to stay in Madeira
8 neighbourhoods compared, with the trade-offs hotel listings don't tell you.
Updated By the AMZBooking editorial team
Photo: Diego Delso, CC BY-SA 4.0
Quick answer
For a first visit, stay in Funchal Old Town. Painted doors on Rua de Santa Maria, the market and the cable car station. Best alternatives — families: Funchal Lido; budget: Câmara de Lobos.
Key facts
- First visit
- Funchal Old Town
- Families
- Funchal Lido
- Budget
- Câmara de Lobos
- Nightlife
- Funchal Old Town
Best area for each kind of trip
| Trip type | Area | Why |
|---|---|---|
| First-timers | Funchal Old Town | Painted doors on Rua de Santa Maria, the market and the cable car station |
| Families | Funchal Lido | Clifftop resort hotels, sea pools and the Estrada Monumental promenade |
| Couples | Funchal Old Town | Painted doors on Rua de Santa Maria, the market and the cable car station |
| Budget | Câmara de Lobos | Colourful fishing harbour, poncha bars and Churchill's viewpoint |
| Luxury | Funchal Lido | Clifftop resort hotels, sea pools and the Estrada Monumental promenade |
| Nightlife | Funchal Old Town | Painted doors on Rua de Santa Maria, the market and the cable car station |
| Food lovers | Funchal Old Town | Painted doors on Rua de Santa Maria, the market and the cable car station |
| Solo travellers | Ponta do Sol | Sunny south-coast town with a seafront of cafés and a remote-worker community |
| Quiet stays | Caniço and Garajau | Quiet clifftop resorts east of Funchal near the Cristo Rei statue |
| Beach | Funchal Lido | Clifftop resort hotels, sea pools and the Estrada Monumental promenade |
Madeira neighbourhoods in detail
$$$ · Best for first-timers, couples, food lovers and nightlife
Funchal Old Town
Funchal's Zona Velha around Rua de Santa Maria is the island's most atmospheric base, with the art project of painted doors, small restaurants and poncha bars, the Fortaleza de São Tiago and the Mercado dos Lavradores. The lower station of the Monte cable car is on the seafront here, and the cathedral and marina are a 10-minute walk.
- Good
- Walk to restaurants, market and cable car; Lively evenings; Good bus links across the island
- Watch out
- Steep streets above the seafront; Restaurant touts on Rua de Santa Maria
- Nearby
- Mercado dos Lavradores, Funchal cable car, Rua de Santa Maria, Funchal Cathedral
$$$ · Best for families, luxury, beach and first-timers
Funchal Lido
West of the centre, the Lido or Hotel Zone has most of Madeira's large resort hotels, many with saltwater pools on the cliffs. The Lido seafront promenade leads to Praia Formosa, the island's largest pebble beach, and buses run into central Funchal in about 15 minutes.
- Good
- Wide choice of resort hotels; Sea pools and promenades; Easy bus to the centre
- Watch out
- Less local character; A bus ride to the Old Town in the evening
- Nearby
- Lido promenade, Praia Formosa, Forum Madeira
$$ · Best for food lovers, budget and couples
Câmara de Lobos
About 8 km west of Funchal, this fishing town has a small harbour full of painted boats, where Winston Churchill painted in 1950. It is known for poncha bars and fish restaurants, and it sits close to the Cabo Girão cliffs and the vineyards of Estreito de Câmara de Lobos.
- Good
- Authentic local atmosphere; Good-value seafood; Close to Funchal by bus
- Watch out
- Fewer hotels; Busy with tour groups at midday
- Nearby
- Cabo Girão, Estreito de Câmara de Lobos, Funchal
$$ · Best for quiet stays, couples and families
Caniço and Garajau
Caniço de Baixo and Garajau, between Funchal and the airport, are calm resort areas with sea-view hotels and access to the Garajau marine reserve, a popular area for snorkelling and diving. A cable car drops from the Cristo Rei statue to a small pebble beach.
- Good
- Peaceful and close to the airport; Good snorkelling; Sea views
- Watch out
- Hilly with little to do at night; Car or bus needed for Funchal
- Nearby
- Cristo Rei, Garajau marine reserve, Madeira Airport
$$ · Best for quiet stays, solo travellers and couples
Ponta do Sol
Ponta do Sol, on the south-west coast, is often one of the sunniest towns on the island, with a pebble beach, a short seafront and steep streets of whitewashed houses. It became known for remote workers after a digital-nomad scheme launched there in 2021, and it is a good base for the west coast and Paul da Serra plateau.
- Good
- Often sunny; Relaxed small-town feel; Central for west-coast trips
- Watch out
- Limited restaurants; Car needed for most sights
- Nearby
- Calheta, Paul da Serra, Madalena do Mar
$$$ · Best for beach, families and quiet stays
Calheta
Calheta has one of Madeira's few sandy beaches, made with imported golden sand in a sheltered bay beside a marina. The town has the Mudas contemporary art museum and is a base for whale-watching boats, walks on the Paul da Serra plateau and the west coast.
- Good
- Calm sandy beach for children; Sunny western weather; Marina restaurants
- Watch out
- About 45 minutes' drive from Funchal; Quiet in the evenings
- Nearby
- Calheta beach, Mudas Museum, Rabaçal, Ponta do Pargo
$$ · Best for budget, beach and families
Machico
Machico, on the east coast where Portuguese settlers first landed in the 15th century, has a sheltered bay with a golden-sand beach, a small old town and easy access to the Ponta de São Lourenço peninsula. It is about ten minutes from the airport.
- Good
- Sandy beach; Close to the airport; Lower prices than Funchal
- Watch out
- Can be windier than the south-west; Fewer restaurants
- Nearby
- Ponta de São Lourenço, Madeira Airport, Caniçal
$$ · Best for quiet stays, families and couples
Porto Moniz
At the north-western tip of the island, Porto Moniz is known for its natural swimming pools in black lava rock, filled by the sea. It is a peaceful overnight base for exploring the wild north coast, the Fanal laurel forest and Seixal's black sand beach.
- Good
- Dramatic coastline; Natural pools on the doorstep; Calm once day-trippers leave
- Watch out
- Cooler and cloudier than the south; About an hour's drive from Funchal
- Nearby
- Porto Moniz natural pools, Seixal, Fanal, São Vicente
Areas compared
| Area | Price | Nearby |
|---|---|---|
| Funchal Old Town | $$$ | Mercado dos Lavradores, Funchal cable car, Rua de Santa Maria, Funchal Cathedral |
| Funchal Lido | $$$ | Lido promenade, Praia Formosa, Forum Madeira |
| Câmara de Lobos | $$ | Cabo Girão, Estreito de Câmara de Lobos, Funchal |
| Caniço and Garajau | $$ | Cristo Rei, Garajau marine reserve, Madeira Airport |
| Ponta do Sol | $$ | Calheta, Paul da Serra, Madalena do Mar |
| Calheta | $$$ | Calheta beach, Mudas Museum, Rabaçal, Ponta do Pargo |
| Machico | $$ | Ponta de São Lourenço, Madeira Airport, Caniçal |
| Porto Moniz | $$ | Porto Moniz natural pools, Seixal, Fanal, São Vicente |
Getting to your hotel
Madeira's Cristiano Ronaldo International Airport is at Santa Cruz, about 18 km east of Funchal; airport buses reach the city in about 30–40 minutes and taxis in about 20–25. Its runway, partly built on columns over the sea, is known for strong crosswinds that occasionally cause delays or diversions. Porto Santo has its own small airport with flights from Madeira and Lisbon.
Questions travellers ask
+What is the best area to stay in Madeira for first-time visitors?
Funchal Old Town. Funchal's Zona Velha around Rua de Santa Maria is the island's most atmospheric base, with the art project of painted doors, small restaurants and poncha bars, the Fortaleza de São Tiago and the Mercado dos Lavradores.
+Where should families stay in Madeira?
Funchal Lido: Wide choice of resort hotels.
+Which area of Madeira is best for a budget stay?
Câmara de Lobos ($$): Colourful fishing harbour, poncha bars and Churchill's viewpoint.