Where should you stay in Madeira? For a first trip, I would usually choose Funchal, but it is not the only good base. Calheta is better suited to a holiday built around your hotel, the pool and the beach, while Porto Moniz puts the dramatic north coast on your doorstep.
Madeira is an island where steep hills and winding roads matter more than distances as the crow flies. Your hotel needs to suit your plans and whether you will have a car. Here, I take you through three different areas and specific hotels to help you choose a base that makes your days easier.
Here are the best areas to stay in Madeira:
- Funchal – best for your first visit and a holiday without a car.
- Calheta – best for pools, the beach and relaxation.
- Porto Moniz – best for the north coast and nature.
Below, my guide to where to stay in Madeira takes a closer look at each area and the hotels I recommend.
1. Funchal – best for your first visit and a holiday without a car 🌺
- Distance to the centre: The city centre is around the cathedral and waterfront; the Lido area is roughly 2-4 km to the west.
- Public transport: Buses and taxis; the widest choice of restaurants and tour pick-up points if you are travelling without a car.
- From the airport: Around 20-35 minutes by car from Madeira Airport. Allow longer for the Aerobus and the walk to your hotel, depending on the stop and location.
- Price level: €-€€€; the island’s widest selection, from simple city hotels to luxury stays.
- Things to watch out for: Check the hills and steps around your hotel. Keep an eye on valuables in crowds and take care on slippery paving after rain.
Funchal is the easiest base to recommend for a first trip to Madeira. You have restaurants, shops and a waterfront to enjoy without getting into the car first. It also has the broadest range of hotels, making it easier to find something that suits both your budget and the people you are travelling with.
I would distinguish between the centre itself and the hotel district further west around Lido. The centre works best if you want to walk out for dinner, browse the shops and be close to the city’s streets. Lido has more large hotels and a stronger holiday-resort feel, but you should expect a longer walk or a bus ride into the city centre.
See hotels in and around Funchal here
The change in elevation is the detail many people overlook. A hotel can look close to the harbour on a map and still involve a steep walk home. Check the walking route rather than just the distance in metres. This is particularly useful if you are bringing a pushchair, have trouble with your knees or want to walk home after a long dinner.
Without a car, Funchal is definitely where I would start. The airport explains the public transport options, and SIGA has information about the island’s buses. You can combine days in the city with organised excursions, but check the pick-up point: hotels up in the mountains are not necessarily covered in the same way.
Funchal suits couples, families and anyone who wants to eat somewhere different each evening. On the other hand, you will need to leave the city for many of the island’s big nature experiences. On a week-long holiday, that can be a very good balance: a convenient base in the evening and days exploring different sides of the island when the weather and your energy allow.
Before heading out on a hike, always check which trails are open with IFCN, as conditions can change. Bear in mind that a hotel outside town often requires a car, even if its address says Funchal or Calheta.
Places to Stay in Funchal
Reid’s Palace, A Belmond Hotel – luxury
One of Madeira’s classic hotels on the coast west of central Funchal. This is a choice for a special hotel stay where you want to spend time enjoying the property, rather than simply sleeping there between excursions.
See photos, available rooms and prices at Reid’s Palace, A Belmond Hotel
Castanheiro Boutique Hotel – upper mid-range
A boutique hotel in central Funchal that is worth considering if you prioritise the city and restaurants within walking distance. It is a more obvious choice for a city stay than a large resort further out in the Lido area.
See photos, available rooms and prices at Castanheiro Boutique Hotel
Hotel Madeira – budget to mid-range
A central hotel with a rooftop pool, allowing you to combine the city’s conveniences with a break by the water. I would look here if you want a practical base while steering clear of the island’s most expensive hotel prices.
See photos, available rooms and prices at Hotel Madeira
2. Calheta – best for pools, the beach and relaxation ☀️
- Distance to the centre: Calheta is on the southwest coast, roughly 30-40 km by road from Funchal; the beach and marina are the local landmarks.
- Public transport: A car is recommended for excursions. There are buses, but they offer less flexibility than those from Funchal.
- From the airport: Around 45-60 minutes by car from Madeira Airport, depending on your hotel’s elevation and location.
- Price level: €€-€€€ by the water; smaller hotels higher up can be cheaper.
- Things to watch out for: Observe beach flags and sea conditions. A Calheta hotel address can mean steep mountain roads high above the beach.
Calheta is for you if you want a holiday with more time at the hotel and less city life around you. There are artificial sandy beaches beside the marina and a small choice of places to eat. It is not a large, continuous resort town like those you might know from the Mediterranean, but a base with a different pace from Funchal.
I would focus on the coast near the beach if you want to walk down to the water and eat out without taking the car. Higher in the hills, you get different surroundings, but you also become more dependent on transport.
See hotels in and around Calheta here
Calheta is a good example of why the municipality’s name is not enough when booking a hotel in Madeira. The area extends uphill, and accommodation can be a long way from the marina itself. A sea view does not necessarily mean an easy walk down for a swim. Check the elevation and the actual route.
With a hire car, Calheta can be a good base for exploring the southwest coast and heading up into the island’s higher areas. I would avoid planning every day too tightly before leaving home, though. Madeira’s weather varies, and a flexible itinerary makes it easier to choose a good day for hiking and another for relaxing at the hotel.
The area is particularly suitable for couples and families who prioritise a comfortable hotel and quiet evenings. If you want lots of restaurants and shops within walking distance, Funchal will probably suit you better. If you are combining Madeira with a few nights in Portugal’s capital, you can also read my guide to where to stay in Lisbon and enjoy two quite different stays on the same trip.
Places to Stay in Calheta
Saccharum Resort & Spa – luxury
A larger hotel on Calheta’s coast that suits a holiday where pools, relaxation and the hotel experience are priorities. It is especially relevant if you have a car for excursions and want to return to a comfortable base afterwards.
See photos, available rooms and prices at Saccharum Resort & Spa
Calheta Beach – mid-range with all-inclusive
The hotel is beside Calheta’s sandy beach and is an obvious option to compare for a family holiday. Check what your chosen package includes and which room type you are booking, so the meals and space work for your family rather than choosing by the hotel’s name alone.
See photos, available rooms and prices at Calheta Beach
Quinta Alegre – often a cheaper alternative in the hills
A smaller hotel in Estreito da Calheta that makes most sense if you have a car and want to spend your days exploring. It is set up in the hills and should be chosen for its surroundings, rather than for an easy walk to the beach.
See photos, available rooms and prices at Quinta Alegre
3. Porto Moniz – best for the north coast and nature 🌊
- Distance to the centre: On the northwest coast, roughly 50 km by road from Funchal; the natural swimming pools are the town’s central landmark.
- Public transport: A car makes your stay considerably easier; check bus connections carefully if you are travelling without one.
- From the airport: Around 60-80 minutes by car from Madeira Airport; the route and weather can affect the journey time.
- Price level: €-€€€; less choice than in Funchal and noticeable seasonal variation.
- Things to watch out for: The sea pools can close in rough weather. Respect barriers and do not climb out onto rocks for a photograph.
Porto Moniz is a good choice if you are most excited about the north coast’s scenery. Here, the sea and steep surroundings take precedence over shopping and restaurant choice. The town is particularly known for its natural swimming pools, and staying overnight lets you experience it at different times from the day-trippers.
I would stay in Porto Moniz as a shorter stop on a longer Madeira trip, or choose it for a holiday where quiet evenings are a bonus. Do not expect the same choice of restaurants as in Funchal. In return, you avoid driving all the way back to the south coast after every day in this part of the island.
See hotels in and around Porto Moniz here
The municipality provides information about Porto Moniz’s bathing areas. The pools are a big part of the appeal, but the sea decides when conditions are suitable. I would not book several nights purely on the assumption that you can swim every day. The scenery and excursions should appeal to you too.
With a car, you can use the town as a base for other places along the north coast and up towards higher ground. Distances are not enormous, but the roads, weather and stops along the way mean you should rarely plan around the fastest journey time shown on a map. Leave room to turn back or change your route if conditions are poor.
Porto Moniz is best for travellers who already know they want more nature than city life. For a first trip without a car, I would still choose Funchal. If you have a week or longer and feel like changing hotels, a few nights here can add variety and make the north coast more than a quick stop between other sights.
Places to Stay in Porto Moniz
Aqua Natura Bay – upper mid-range
One of the town’s more comfort-focused hotel choices, with pool facilities and a location near the coast. It is worth a look if you want a good base for the north coast and somewhere to relax after a day of exploring.
See photos, available rooms and prices at Aqua Natura Bay
Aqua Natura Madeira – mid-range
The hotel is close to Porto Moniz’s natural swimming pools and suits a stay where the sea is the main attraction. Choose your room type according to the view you want, and remember that swimming always depends on the conditions that day.
See photos, available rooms and prices at Aqua Natura Madeira
Hotel Euro Moniz – budget to mid-range
A simpler hotel option in Porto Moniz that can make sense for a couple of nights on a trip around the island. Here, I would prioritise the location and spend the rest of the budget on excursions and food, rather than expecting a large resort atmosphere.
See photos, available rooms and prices at Hotel Euro Moniz
Where should you not stay in Madeira?
I would avoid an isolated mountain hotel without a car unless the hotel itself is the purpose of your holiday and you have arranged transport. A short distance on a map can hide a big climb, and you cannot simply walk down to town and back up after dinner everywhere.
I would not choose the north coast solely for sunshine and swimming every day either. Madeira’s weather is changeable, and sea conditions can limit access to swimming areas.
For a first trip without a car, Funchal is usually the most practical choice. Calheta suits a more relaxed holiday with the hotel and beach at its centre. Porto Moniz makes sense when the north coast and nature are your priorities. I hope this guide has helped you choose the right base and feel ready for your Madeira trip.
Travel ressources & websites I use all the time 👇
• Booking.com has the best offers on hotels and unique places to stay
• GetYourGuide is the best place to book tours & activities with free cancellation
• Welcome Pickups is the best & safest place to pre-book airport transfers
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