Where to Stay in Madeira: Best Areas and Hotels

Where you stay in Madeira makes a big difference: Funchal for restaurants and convenience, the sunny southwest for the beach and sunsets, or the green north for walking and wild scenery. Here’s how to choose where to stay in Madeira, area by area.

Quick answer: first-timers should stay in Funchal (the Lido area for pools and sea views, the old town for restaurants). For more sun and the sandy beach, stay in Calheta or Ponta do Sol. For hiking and nature, the north coast around Santana or Porto Moniz. With a car, you can reach anywhere on the island in about an hour.

Why your base matters

Madeira is small on the map, but the mountains in the middle split it into very different climates. The south coast is sunnier and drier. The north is greener, cooler and often cloudy. Roads are good, with tunnels cutting through the ridges, but driving on winding mountain roads every day gets tiring. Many visitors split their stay: a few nights in Funchal, then a few in the southwest or the north.

Funchal

The capital, with the most hotels, restaurants and tours, and buses and cable cars to the hills. It is about 20 to 30 minutes by car from the airport.

• The Lido and hotel zone: big hotels with pools and sea views, the seafront promenade and seawater pools. Try Savoy Palace, Pestana Promenade or Les Suites at The Cliff Bay.
• The old town and centre: walk to the market, the Zona Velha and the cable car. Try Castanheiro Boutique Hotel, The Vine or the budget Hotel Madeira.
• Above the bay: classic grand hotels and quintas with gardens, like Reid’s Palace and Quinta da Casa Branca.

Funchal suits you if you want restaurants on your doorstep, no need for a car every day, and easy access to boat trips, the Monte cable car and the Mercado dos Lavradores. The Lido is about a 30-minute walk or a short bus ride from the old town. Browse all Funchal stays · things to do in Funchal.

The southwest: Calheta and Ponta do Sol

The sunniest part of the island, with Madeira’s sheltered sandy beach at Calheta and beautiful sunsets. Quieter than Funchal, and great for families and couples. Calheta is about 40 minutes’ drive from Funchal, and Ponta do Sol a little less. You are also closer to the 25 Fontes and Risco walks at Rabaçal and to the west coast.

• Savoy Calheta Beach: all-inclusive on the beach, with pools and a kids’ club.
• Socalco Nature: farm-to-table villas on the hillside above Calheta.
• Estalagem da Ponta do Sol: a clifftop design hotel in a converted farmhouse.

Calheta stays · Ponta do Sol stays.

The north coast

Wild, green and dramatic, with waterfalls, laurel forests and the natural pools of Porto Moniz. Cooler and wetter, but perfect for walkers. Santana is about 45 minutes to an hour from Funchal through the tunnels, and Porto Moniz about an hour. You are close to the Caldeirão Verde levada, Pico Ruivo and the black-sand beach at Seixal.

• Aqua Natura (Porto Moniz): next to the lava pools.
• Quinta do Furão (Santana): a clifftop wine estate with vineyards, gardens and indoor and outdoor pools.

See Santana.

The east: Machico and Caniçal

Close to the airport, with Machico’s golden beach and the wild Ponta de São Lourenço peninsula nearby. Handy for short stays and early flights. Machico is a real town with its own restaurants, so you are not stuck in a resort.

Getting around

• Car hire: the easiest way to see the island. The fast road along the south coast links the airport, Funchal and the southwest. Mountain roads are steep and narrow, so take your time.
• Buses: Funchal has city buses and regional routes to most towns, but services to the north and west can be slow and infrequent. All buses now run as one network, SIGA, and every route was given a new three-digit number in March 2026, so check current timetables.
• From the airport: the Aerobus runs into Funchal and stops along the city as far as the hotel zone. It costs €6.70 one way, paid in cash to the driver. A taxi takes 20 to 30 minutes.
• Tours: if you don’t want to drive, day tours from Funchal cover the west, the east and the peaks.

See getting around Madeira.

When to go

Madeira is mild all year, which is why it is popular for winter sun. Spring brings the Flower Festival, usually from late April into May. The Atlantic Festival fills June with Saturday fireworks over Funchal bay. The Wine Festival runs in late August and early September, and the New Year’s Eve fireworks are among the most famous in the world. Book Funchal hotels months ahead for New Year. See the best time to visit Madeira.

In 2026 the Flower Festival began on 30 April, with flower parades on 3 and 17 May; the Atlantic Festival ran from 5 to 28 June; and the Wine Festival from 23 August to 13 September.

Food

Wherever you stay, try espetada (beef grilled on a bay-leaf skewer), bolo do caco garlic bread, grilled limpets, black scabbard fish (often served with banana) and a poncha, the local rum and citrus drink. Funchal has the widest choice of restaurants. In the north and west, choices are fewer, so check what is open near your hotel in the evening.

How to choose

• No car? Stay in Funchal, where buses and tours start.
• Hiking trip? Funchal or the north, with a car. Most classified trails now need a SIMplifica booking (usually €4.50, or €10.50 for the PR1). See levada walks.
• Families: Funchal’s Lido or Calheta. See Madeira with kids.
• Winter sun: the south coast is warmest.

FAQ

Where should you stay in Madeira without a car?

Funchal. It has the most buses, tours that pick up from your hotel, the cable car and the Aerobus from the airport, so you can see the island without driving.

Which part of Madeira is the sunniest?

The southwest, around Calheta and Ponta do Sol, usually gets the most sun. The north coast is greener and cloudier.

Is it worth splitting your stay?

Yes, if you have a week or more. A few nights in Funchal plus a few in the southwest or the north cuts down on long daily drives.

Is the PR1 hike open in 2026?

Yes. It reopened in April 2026, one way from Pico do Arieiro towards Pico Ruivo, and has run daily since late June. Book it on SIMplifica.

Landing at Madeira airport? Book a fixed-price pickup with Welcome Pickups. An English-speaking driver meets you at arrivals with a name sign, tracks your flight if it’s late, and child seats can be added when you book.

More: the best hotels in Madeira, the Madeira itinerary and all Madeira stays.

See also: Ponta do Sol, Calheta and getting from the airport to Funchal.

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