Last Updated on 8.7.2026 by Vojta
Madeira is a small island with an enormous range. In half an hour behind the wheel you can drive from the sunny south to the misty north and watch the landscape transform completely. That is exactly why the question of where to stay in Madeira shapes the whole feel of your trip. You’ll want one kind of base if you fancy strolling out to dinner and a bar in the evening, another if you plan to head off on the levadas by car every day, and something different again if you’re after peace and quiet above the ocean with as much sunshine as possible.
From Funchal all the way to Porto Moniz, Madeira gives you plenty of choice, and in this guide we’ll steer you towards specific areas and types of accommodation to match what you want from your stay — whether you’re a couple, a family, or simply after a cheap bed between day trips. We’ll walk you through how to pick a location, where the best base for a road trip is, what it all costs and when to book. The aim is that by the end you’ll know exactly where to head.
Where to stay in Madeira in a nutshell
- Most practical base: Funchal — the widest choice of accommodation, plenty of nightlife, and most tours leave from here. You won’t need a car.
- For a road trip by car: the south-west (Calheta, Ponta do Sol) — more sun and a short hop to every corner of the island.
- For peace and sunshine: Ponta do Sol and Calheta in the south-west; expect the most rain up north.
- With the family: the Funchal Lido hotel zone, or Caniço/Garajau — pools and apartments with a kitchen.
- First/last night near the airport: Machico or Santa Cruz — just minutes from the runway.
- Budget: a hostel or apartment from around €40–60, a decent hotel €80–140 a night. Book two to four months ahead.
How to choose your location in Madeira (car, north vs south)
Before you start scrolling through hotels, sort out three things — it’ll save you a lot of pointless driving.
1) Do you have a car or not? Without one, only Funchal really makes sense — it has buses, taxis and nightlife on the doorstep, and most organised trips set off from there anyway. The moment you have a car, the whole island opens up and it pays to stay closer to the nature you’ve come for.
2) South or north? This is the big one on Madeira. The south (Funchal, Caniço, Ponta do Sol, Calheta) is sunnier and drier, while the north (Porto Moniz, São Vicente, Santana) is greener and more dramatic — and often mistier and wetter. If you want a safe bet on sunshine and swimming, head south. If you’re chasing raw scenery and waterfalls right by the road, the north will win you over.
3) One base or two? For five to seven days, a single location is plenty — the island is small and you can reach almost anywhere within an hour. For seven to ten days, consider splitting your stay — a few nights in the south and a few in the north — so you can experience both faces of the island and do less back-and-forth driving.
💡 Tip: Madeira is mountainous and the roads twist and turn, so distances on the map are deceptive. Think in driving time rather than kilometres: Funchal to Porto Moniz is barely 50 km, but it can easily take an hour and a quarter by car.
12 ideas for where to stay in Madeira
We’ve ordered the areas from the most practical bases through to the more special picks. For each one you’ll find who it suits, the kind of accommodation to expect and a rough price per night. So, where should you stay in Madeira?
1. Funchal — the most practical base
The capital, and the obvious number one for most travellers. It has the biggest concentration of accommodation in every category — from hostels through apartments to luxury hotels such as the Savoy Palace or Pestana CR7. In the evening you can walk to dinner, to a bar and to the famous cable car up to Monte, and most day trips start here (whale watching, jeep safaris, canyoning).
Who it suits: anyone without a car, city and nightlife lovers, first-time visitors.
Types: hostels, apartments, boutique and large hotels.
Roughly: hostel from around €25–40 a bed, apartment €60–100, hotel €90–160 a night.
💡 Tip: If you have a car, check parking with your hotel — in central Funchal it’s often paid or limited. Accommodation in Funchal →
2. Funchal — Lido and the hotel zone
The western part of Funchal around the Lido promenade is the classic resort zone, with pools and ocean views. You’re just minutes from the centre but in a calmer, more hotel-like atmosphere, with the Lido sea baths and Praia Formosa within reach. This is home to names like the Vidamar Resort, Meliá Madeira Mare and Pestana Royal.
Who it suits: a relaxing pool-side stay, anyone who wants a hotel and the city close by.
Types: 4–5* resort hotels, aparthotels.
Roughly: €100–180 a night, more in peak season.
3. Câmara de Lobos — a fishing town next to Funchal
A picturesque fishing village a few kilometres west of Funchal, a favourite of Winston Churchill’s. It has an authentic feel, colourful boats and the famous Cabo Girão viewpoint nearby. You’ll stay more cheaply than in Funchal but still have it on your doorstep — a few minutes by car or bus.
Who it suits: anyone after a quieter base near Funchal with a more authentic atmosphere.
Types: apartments, small guesthouses, quintas.
Roughly: apartment €55–90 a night.
4. Caniço and Garajau — calm between the airport and Funchal
A practical compromise in the south-east: you’re out of the city bustle, but both Funchal and the airport are a short hop away. Garajau draws divers (there’s a marine reserve) and Caniço has hotels with clifftop views. It works well for a longer stay too, when you want to be out exploring by day and enjoy some peace in the evening.
Who it suits: families, longer stays, divers, anyone wanting quiet near the airport.
Types: hotels, apartments, aparthotels with a pool.
Roughly: €70–130 a night.
💡 Tip: Caniço is ideal if you land in the evening — you’re there in 10 minutes from the airport and don’t have to worry about getting into the centre straight away. Accommodation in Caniço →
5. Ponta do Sol — the most sun and “slow Madeira”
As the name suggests (“sunny point”), this is one of the sunniest spots on the island and, for our money, the most enjoyable side of “slow Madeira”. A calm little town in the south-west with a pebble beach, lovely views and a laid-back mood — popular with digital nomads, too. A great base if you have a car and want to head out every day but come back to peace above the ocean each evening.
Who it suits: couples, active travellers with a car, lovers of sun and quiet.
Types: apartments, small hotels and estalagens, quintas.
Roughly: €65–120 a night.
💡 Tip: Ponta do Sol is a perfect halfway base if you want to combine the south and the west — the Cascata dos Anjos waterfall and Calheta are both just minutes away. Accommodation in Ponta do Sol →
6. Calheta — the sunny south-west and the best all-round road-trip base
The south-west coast, roughly 40 minutes from Funchal, with steady, sunny weather and even a sandy beach (a rarity — the sand was shipped in). The mood is calmer here but there are still plenty of services, a marina and the modern Saccharum resort. For a road trip it’s one of the best bases in our view — close to the levadas and to the western tip of the island.
Who it suits: a road trip by car, sun-seekers, anyone who wants a beach and quiet.
Types: resort (Saccharum), quintas, apartments.
Roughly: apartment €70–120, resort €130–200 a night.
7. Porto Moniz and Seixal — the wild north and natural pools
The north-western tip, famous for its volcanic natural pools washed by Atlantic waves. Dramatic scenery, raw nature and, next door, Seixal with its black beach and a waterfall tumbling straight onto the road. Ideal for one or two nights as a northern stopover — but be ready for cooler, more changeable weather.
Who it suits: a second base in the north, lovers of wild scenery.
Types: hotels (Aqua Natura), guesthouses, apartments.
Roughly: €60–110 a night.
8. Santana — countryside, cliffs and traditional houses
The north-east of the island, known for its pointed thatched houses and rural atmosphere. An excellent second base if you’re drawn to nature, hikes up Pico Ruivo and quiet living far from the crowds. The Quinta do Furão here offers clifftop views you won’t forget in a hurry.
Who it suits: lovers of nature and hiking, peace and quiet, a second stop in the north.
Types: quintas, rural guesthouses, small hotels.
Roughly: €65–120 a night.
9. São Vicente — the green heart of the north
A valley in the north, “picture-postcard Madeira” — lush green, with levadas, waterfalls and volcanic caves. A good base for hiking and exploring the north coast: from Funchal you reach it through the tunnel in around 45–50 minutes (about 32 km), Porto Moniz is only 30–40 minutes along the north coast and Santana roughly the same, so you can comfortably loop the whole north from here. Just be prepared for cooler, wetter weather than in the south; a car is practically essential here.
Who it suits: hikers, lovers of greenery and levadas, anyone who wants to see the “real” north.
Types: solares and estalagens (historic guesthouses), apartments.
Roughly: €55–100 a night.
10. Machico — a beach and a first/last night near the airport
The island’s second-largest town, in the east, just minutes from the airport and with one of Madeira’s few sandy beaches. Great if you land late or fly out early in the morning — no need to worry about getting into the centre. And if you’re tempted by the Ponta de São Lourenço peninsula, it makes more sense as a base than Funchal.
Who it suits: a first/last night, a beachy mood, day trips to the east.
Types: hotels (Dom Pedro Madeira), residencials, apartments.
Roughly: €60–110 a night.
11. Santa Cruz — closest to the airport and a cheaper option
A quiet seaside town right by the airport, between Caniço and Machico. Cheaper than Funchal, with an Aquapark, pools and a promenade — a practical choice for a first night and for budget travellers who want to be near the south without paying Funchal prices.
Who it suits: budget travellers, a first/last night, a quieter stay by the sea.
Types: hotels, apartments, guesthouses.
Roughly: €50–95 a night.
12. Porto Santo — golden sands on the sister island
If you’re longing for nine kilometres of golden sand and proper swimming, hop over to the sister island of Porto Santo — by ferry from Funchal (around 2.5 hours) or by plane. It’s a different world from mountainous Madeira: flat, sunny, all about the beach. Brilliant for two to four days of relaxation, but not as a main base for touring Madeira.
Who it suits: swimming and the beach, relaxing, families with children.
Types: resort hotels, apartments.
Roughly: €70–150 a night.
The best base for day trips by car
If you’re planning to head out by car every day to the levadas, viewpoints and waterfalls, two things really matter: sun and driving time. The south-west — Calheta and Ponta do Sol answers both best. You’ll be staying in the island’s most reliable weather, you can reach every main corner (the western tip, the north through the tunnels, and Funchal) within an hour, and in the evening you get peace above the ocean instead of city noise.
If you want a single base for the whole trip plus some nightlife, go for Funchal or Caniço — a central spot on the south coast means reasonable drives in every direction. And for seven to ten days, the ideal is combining two bases: a few nights on the sunny south-west and a few in the wild north (Porto Moniz or São Vicente), so you see both sides of the island and clock up fewer kilometres.
💡 Tip: Pick your car up at the airport and drop it back there — the airport is in the south-east and it’s a short drive to most bases from there. Compare accommodation in southern Madeira →
Accommodation for couples / families / on a budget
Madeira has something for every kind of traveller — it just helps to know where to point yourself.
- For couples: Ponta do Sol and Calheta on the sunny south-west — quiet, lovely views and romantic quintas. For luxury with a view, pick a boutique hotel in Funchal or a quinta above the sea.
- For families: the Funchal Lido hotel zone, or Caniço/Garajau — pools, apartments with a kitchen, close to the airport and to amenities. For proper swimming and a beach, Porto Santo is the best.
- On a budget (backpackers): hostels and shared apartments in Funchal, or the cheaper Santa Cruz and Machico near the airport. An apartment with a kitchen slashes your food spend.
💡 Tip: An apartment with a kitchen pays off for couples too — breakfasts and a few dinners “at home” can easily save €20–30 a day, and Funchal’s Mercado dos Lavradores market is an experience in itself for shopping.
Which types of accommodation to choose in Madeira
Accommodation on Madeira isn’t just hotels. The island has a strong tradition of family-run and rural places to stay, and the type you pick often shapes both the price and the atmosphere of your stay. Here’s what to expect.
- Hotels and resorts: the widest choice is in Funchal and the Lido hotel zone, with more resorts in Caniço, Calheta and Machico. A safe bet with breakfast, a pool and a reception desk. Ratings run from three-star to five-star palaces, and the prices follow suit.
- Apartments and aparthotels: the best value for money, especially for a longer stay and for families. Your own kitchen greatly cuts your food spend, and you’ll find them practically everywhere, from central Funchal to the quiet south-west.
- Quintas and rural stays: a quinta is a traditional Madeiran estate, often a historic villa with grounds and a view, now converted into a small hotel or guesthouse. This category also covers “turismo rural” and historic solares and estalagens. Ideal for couples and lovers of peace, typically in the south-west (Ponta do Sol, Calheta) and the rural north (Santana, São Vicente).
- Hostels and guesthouses: the cheapest option, concentrated mainly in Funchal. Dorm beds and private rooms alike, with good facilities for backpackers and solo travellers. You’ll also find smaller residencials and guesthouses in Machico, Santa Cruz and Porto Moniz.
💡 Tip: Want to experience the “real” Madeira? Try at least a couple of nights in a quinta with a view over the ocean or into the mountains. For much the same money as an ordinary hotel you get an atmosphere and a calm that are hard to find in town.
What it costs and when to book
Madeira isn’t the cheapest destination, but you can do it smartly. A lot depends on the type of accommodation and the season — the peaks are summer, Christmas and New Year (famous for the fireworks) and Easter. Here are rough prices per night for a couple:
Prices are in euros, roughly €1 ≈ £0.85. Treat them as a guide: go higher in peak season and over the holidays, lower off-season.
| Type of accommodation | Price per night (€) | Approx. (£) |
|---|---|---|
| Hostel (bed per person) | €25–40 | £21–34 |
| Guesthouse / residencial | €50–90 | £43–77 |
| Apartment with kitchen | €55–110 | £47–94 |
| Quinta / rural stay | €65–130 | £55–110 |
| Hotel 3–4* | €80–150 | £68–128 |
| Resort / luxury 5* hotel | from €150 | from £128 |
💡 Tip: Book two to four months ahead, especially for spring, summer and the turn of the year — the best apartments and quintas go first. For Christmas and New Year, half a year ahead isn’t over the top.
Where to next
- What to see in Madeira (2026)
- What to visit in Madeira (2026)
- Weather in Madeira (2026)
- Madeira: the most beautiful places (2026)
Frequently asked questions: where to stay in Madeira
Where is the best place to stay in Madeira? For most travellers the best choice is Funchal — it has the widest range of accommodation, the nightlife and most day trips leaving from here, and you can manage without a car. If you have a car and want sun and quiet, go for the south-west (Ponta do Sol, Calheta).
Is it better to stay in the south or the north of Madeira? The south (Funchal, Caniço, Ponta do Sol, Calheta) is sunnier and drier, which makes it the more practical main base. The north (Porto Moniz, São Vicente, Santana) is greener and more dramatic, but cooler and wetter — ideal as a second stop.
Do I need a car in Madeira? Without a car you can comfortably manage only Funchal and organised trips. As soon as you want to explore the levadas, viewpoints and the north under your own steam, a car is practically essential — but the roads twist and turn, so think in driving time rather than kilometres.
Where to stay in Madeira with the family? The Funchal Lido hotel zone, or Caniço and Garajau, work brilliantly — pools, apartments with a kitchen and close to the airport. For proper swimming and a sandy beach, the sister island of Porto Santo is the best.
Where to stay in Madeira for couples? You’ll find the most romance in Ponta do Sol and Calheta on the sunny south-west — quiet, lovely views and cosy quintas. For luxury with an ocean panorama, pick a boutique hotel or a quinta above the sea near Funchal.
Where to stay in Madeira on a budget? The cheapest options are hostels and shared apartments in Funchal, or smaller towns near the airport like Santa Cruz and Machico. An apartment with its own kitchen also cuts your food spend significantly.
How much does accommodation in Madeira cost per night? A hostel bed goes from around €25, an apartment with a kitchen €55–110, a decent hotel or quinta €80–150, and a luxury resort €150 and up. Prices rise in peak season and over the holidays.
Where to stay near the airport in Madeira? The closest to the runway are Santa Cruz, Caniço and Machico — you’ll reach them within minutes of the airport. They’re handy for a first or last night, when you land late or fly out early in the morning.
Is it worth splitting your stay between two places? For five to seven days a single base is enough — the island is small. For seven to ten days it pays to combine the south (sun, swimming) and the north (greenery, waterfalls) — you’ll see both faces of the island and drive fewer kilometres.
When should you book accommodation in Madeira? Ideally two to four months ahead, especially for spring, summer and the turn of the year. For Christmas and New Year, when Funchal puts on its famous fireworks, half a year ahead is fine.
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