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Câmara de Lobos harbour, Madeira

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

Best Madeira neighbourhood by traveller type
Trip typeAreaWhy
First-timersFunchal Old TownPainted doors on Rua de Santa Maria, the market and the cable car station
FamiliesFunchal LidoClifftop resort hotels, sea pools and the Estrada Monumental promenade
CouplesFunchal Old TownPainted doors on Rua de Santa Maria, the market and the cable car station
BudgetCâmara de LobosColourful fishing harbour, poncha bars and Churchill's viewpoint
LuxuryFunchal LidoClifftop resort hotels, sea pools and the Estrada Monumental promenade
NightlifeFunchal Old TownPainted doors on Rua de Santa Maria, the market and the cable car station
Food loversFunchal Old TownPainted doors on Rua de Santa Maria, the market and the cable car station
Solo travellersPonta do SolSunny south-coast town with a seafront of cafés and a remote-worker community
Quiet staysCaniço and GarajauQuiet clifftop resorts east of Funchal near the Cristo Rei statue
BeachFunchal LidoClifftop 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

Madeira areas: price level and nearby sights
AreaPriceNearby
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.

Getting around Madeira · Typical costs.

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.