Perched in the Atlantic like a green jewel, it draws visitors with its dramatic volcanic cliffs, lush levada trails, and a climate that feels like an endless, gentle spring. We list the best hotels on Madeira based on expert recommendations and thousands of guest reviews. All of our recommended hotels have a review rating of at least 4 out of 5 stars.
Best cheap hotel: White Waters Hotel
Best boutique hotel: Three House Hotel
Best luxury hotel: Reid's Palace
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Madeira’s hotel scene has long leaned toward tradition, filled with stately old properties and converted estates. But Three House Hotel breaks the mold, offering a modern, stylish stay that matches the island’s growing appeal among younger, adventure-seeking travelers. Its spacious, studio-style rooms provide a fresh alternative to the classic terrace-and-tea experience.
Perched above Funchal’s lively harbor, the rooftop is the highlight, with daybeds, greenery, and a saltwater infinity pool. Guests can relax between games of ping-pong while enjoying dishes like tacos and Wagyu burgers.
A century after Madeira’s original Savoy Hotel opened in 1918, the Savoy Palace rose on the same waterfront site in Funchal. Though newly built, it echoes the elegance that once attracted Europe’s aristocracy, blending old-world charm with modern flair. Marble staircases, a grand piano, and lush floral displays meet a dramatic three-story light installation made of metal chains.
The hotel’s wave-like structure towers 16 stories above the sea, while interiors by designer Nini Andrade Silva draw inspiration from the island’s nature. Botanical motifs, sculptural flowers, and carved wood details define the space. Rooms are spacious and refined, featuring warm tones, private balconies, and, in top suites, plunge pools and sweeping terraces.
Saccharum Resort & Spa, set along the oceanfront, blends its past as a sugar cane mill into a lush, biophilic design. Guests can unwind at the beach club, admire views from the rooftop infinity pool, or relax with soothing treatments at the holistic spa.
Romance flows easily here, from waterfront suites to candlelit dinners at three Mediterranean restaurants. Multiple rum bars add a lively touch, while the exclusive Club area offers an extra layer of indulgence, completing the resort’s rich and refined experience.
Perched on a clifftop just outside Funchal, the original Cliff Bay has long been one of Madeira’s most refined hotels. When the neighboring property became available, its owners expanded, restoring terraced gardens and two century-old villas while adding a sleek new wing and an infinity pool, giving rise to the more exclusive Les Suites.
With just 23 suites, Les Suites feels like a private retreat within a larger resort. Many offer sea views, spacious layouts, and elegant marble bathrooms. Guests also enjoy full access to Cliff Bay’s amenities, including a spa, ocean access, open-air Jacuzzis, and a renowned Michelin-starred restaurant.
Perched on Madeira’s cliffs for over 125 years, Reid’s Palace is a coral-hued icon of old European glamour. Once favored by British elites, including Winston Churchill, it now attracts families and honeymooners with its blend of historic charm and modern comfort.
Sunlit terraces invite leisurely drinks in ocean breezes, while elegant rooms balance vintage style with luxury. Guests enjoy diverse dining, three seaside pools, a tranquil spa, and nightly sunsets that feel almost staged by the horizon itself.
Hotel NEXT by Savoy Signature in Funchal is a stylish, modern stay with a fun, youthful feel. It sits right by the sea, with bright design, comfy rooms, and great views over the Atlantic. The rooftop pool and relaxed social spaces give it a lively but easygoing vibe.
It is a great pick if you want somewhere central but still resort-like, with Funchal’s waterfront, restaurants, and old town within easy reach. Expect a fresh, tech-friendly hotel with plenty of spots to chill out.
The Views Baia is an adults-only hilltop hotel in Funchal with great sea and city views. It has a calm, grown-up atmosphere, modern rooms, and a nice pool area where you can relax after exploring Madeira.
You can expect a spa, gym, restaurant, and bar, plus an easy walk or short ride into the centre of Funchal. It feels comfortable and contemporary, making it a good choice for a peaceful stay with everything close by.
Meliá Madeira Mare is a stylish seafront hotel in Funchal, right on the Lido promenade. It has a modern feel, spacious rooms, and many come with balconies and lovely Atlantic views. The location is great for seaside walks, restaurants, and easy bus links into the old town.
There’s a relaxed pool area, a spa for downtime, and a restaurant with good breakfast options. It feels comfortable and polished without being too formal, making it a solid pick for a sunny Madeira stay.
Barceló Funchal Oldtown is a stylish hotel right in the heart of Funchal, perfect if you want to explore the city on foot. It blends modern comfort with the charm of the old town, so you are close to shops, restaurants, and the waterfront.
The rooms feel fresh and elegant, and the rooftop pool and terrace are a real highlight with lovely city views. It is a great pick for a relaxed city break with a touch of luxury.
The Vine Hotel in Funchal is a stylish, modern stay right in the city centre, with shops, restaurants, and the old town close by. The design feels sleek and a little dramatic, while the rooms are comfortable and polished, giving it a boutique luxury vibe.
One of the biggest highlights is the rooftop area, where you get a pool, bar, and amazing views over Funchal and the sea. There is also a spa and a well regarded restaurant, so it works well if you want a city break with a touch of indulgence.
White Waters Hotel has a relaxed, easygoing vibe that makes it feel more like a cozy hangout than a typical hotel. The rooms are simple but bright, and a lot of them come with balconies where you can just sit and watch the ocean do its thing. It’s in Machico, so you’re close to the beach and a bunch of local cafés.
The rooftop terrace is a bit of a hidden gem, perfect for unwinding after a day out exploring. Breakfast is solid, staff are friendly, and everything feels low-key in the best way. It’s not flashy, but that’s kind of the charm.