Where you stay on Madeira shapes the whole trip. The island is small, but its roads are steep and winding, so most first-time visitors are best off in Funchal, where tours pick up, restaurants are plentiful and the airport is close. Within the city, the choice is between the historic centre, with everything on foot, and the hotel zone and Lido to the west, with pools, sea views and a more resort-like feel. Here is how the main areas compare, and the hotel we would pick for each kind of trip.
Central Funchal: for walking everywhere
Staying in the centre means the cathedral, the market, the old town, the cable car and dozens of restaurants are all on foot. It suits travellers without a car, who will use tours and the hop-on hop-off bus for the rest of the island. Streets are busy in the daytime and parking is hard, so choose a hotel with parking or skip the car.
Best value in the centre
Hotel Madeira, on Rua Ivens by the Municipal Garden, is a small, friendly three-star with a fifth-floor pool, a terrace bar and breakfast included. Rooms are simple, but you will not find a better location at the price.
For fans and first-timers on the seafront
Pestana CR7 Funchal sits on the waterfront near the marina, created with Cristiano Ronaldo in his home town. It has a pool, a rooftop bar and a gym, and guests get free entry to the CR7 Museum. Rooms are compact, but the energy and the location make up for it.
The hotel zone and the Lido: for pools and sea views
West of the centre, along Estrada Monumental and around the Lido bathing complex, is where most resort hotels stand. The seafront promenade runs along the cliffs, there are plenty of restaurants and bars, and the centre is a short bus or taxi ride away. It suits travellers who want to swim and relax between excursions.
For couples on a fair budget
Allegro Madeira is a modern four-star adults-only hotel in the Lido with sea-view balconies, an outdoor pool, a wellness centre and a rooftop bar with all-round views. It has paid parking, which is useful if you hire a car for the levadas.
For a splurge
Reid’s Palace, A Belmond Hotel, has stood on its clifftop since 1891 and is still the island’s great hotel, with subtropical gardens, three pools, a spa, a Michelin-starred restaurant and the most famous afternoon tea in the Atlantic. Book a sea-view room for a special occasion.
The hills and the quintas: for gardens and calm
The quintas, old country estates on the slopes above the bay, offer a quieter kind of stay. Quinta da Casa Branca, our featured pick, is a five-star garden hotel on a historic estate with its own banana plantation, forty-three rooms with private terraces and a pool beside a nineteenth-century villa. The seafront is a walk downhill, though most guests take a taxi back up.
Matching base to trip
For a first visit on a budget, Hotel Madeira. For football fans and a central seafront base, Pestana CR7. For couples who want an adults-only hotel with a rooftop view, Allegro Madeira. For a special occasion, Reid’s Palace. For a calm garden retreat, Quinta da Casa Branca.
Practical tips
Book early for Christmas, New Year and the spring Flower Festival, when Funchal fills up. If you hire a car, ask every hotel about parking before you book. If you plan early hikes or sunrise at Pico do Arieiro, a hotel in the west of the city is a little closer to the expressway, and any hotel can usually arrange a packed breakfast.
