Where to Stay in Funchal 2026 | Best Areas + Hotel Map
Madeira is the 'Island of Eternal Spring' - a Portuguese Atlantic paradise with dramatic cliffs, subtropical gardens, and year-round mild weather. Funchal, the capital, cascades down hillsides to the sea, offering everything from historic quintas (manor houses) to modern cliff-top resorts. The island is compact, making anywhere a good base.
Editor's Pick for First-Timers
Zona Velha (Old Town)
The beating heart of Funchal with painted door street art, the best seafood restaurants, lively bars, and stunning waterfront. Walk to the famous Mercado dos Lavradores for exotic fruits. The atmosphere here captures Madeira's unique blend of Portuguese tradition and island creativity.
Zona Velha
Hotel Zone (Lido)
City Center
Monte
Câmara de Lobos
Quick Guide: Best Areas
Things to Know
- • Some Hotel Zone properties are dated 1970s towers - check recent photos
- • Hillside hotels without shuttle can mean long uphill walks back
- • Cruise ship days (check schedule) flood Old Town with day-trippers
- • Some 'sea view' rooms actually face other buildings - verify before booking
Understanding Funchal Geography
Funchal amphitheatres down from the mountains to the sea. The Old Town (Zona Velha) occupies the eastern waterfront. City center with cathedral lies west of here. The Hotel Zone (Lido) stretches further west along clifftops. Monte sits in the hills above, accessible by cable car. Câmara de Lobos is a separate fishing village 10 minutes west.
Accommodation Map
Check availability and prices across Booking.com, Vrbo, and more.
Best Neighborhoods in Funchal
Zona Velha (Old Town)
Best for: Painted doors, seafood restaurants, Mercado dos Lavradores, nightlife
"Vibrant fisherman's quarter with street art and sea views"
Pros
- Best restaurants
- Most atmospheric
- Waterfront location
Cons
- Can be noisy
- Steep streets
- Limited parking
Hotel Zone (Lido)
Best for: Ocean pools, cliff-top views, resort facilities, seaside promenade
"Modern resort zone with dramatic ocean cliff views"
Pros
- Ocean pool access
- Resort amenities
- Great promenade
Cons
- Walk to old town
- Hotel-heavy area
- Less character
City Center (Sé)
Best for: Sé Cathedral, cable car to Monte, shopping, central convenience
"Historic city core with churches, squares, and shopping streets"
Pros
- Central to everything
- Cable car access
- Historic sights
Cons
- Less atmospheric than Old Town
- Busy traffic
- Tourist shops
Monte
Best for: Tropical gardens, toboggan rides, Monte Palace, cooler climate
"Hillside retreat with lush gardens and historic estates"
Pros
- Beautiful gardens
- Cooler temperatures
- Peaceful atmosphere
Cons
- Far from restaurants
- Need cable car/taxi
- Limited nightlife
Câmara de Lobos
Best for: Authentic fishing village, Churchill's viewpoint, poncha bars
"Colorful fishing village that inspired Churchill"
Pros
- Most authentic
- Great seafood
- Stunning viewpoints
Cons
- Far from Funchal
- Limited accommodation
- Need transport
Accommodation Budget in Funchal
Budget
Hostels, budget hotels, shared facilities
Mid-Range
3-star hotels, boutique stays, great locations
Luxury
5-star hotels, suites, premium amenities
💡 Prices vary by season. Book 2-3 months ahead for best rates.
Our Top Hotel Picks
€ Best Budget Hotels
Santa Maria Hostel
Zona Velha
Colorful hostel on the famous painted doors street with rooftop terrace, friendly atmosphere, and best budget location in Funchal.
Castanheiro Boutique Hotel
City Center
Stylish small hotel in historic building with rooftop pool, excellent breakfast, and walking distance to everything.
€€ Best Mid-Range Hotels
The Vine Hotel
City Center
Wine-themed design hotel with rooftop infinity pool, Michelin-starred restaurant, and sleek contemporary interiors.
Savoy Palace
Hotel Zone
Glamorous 5-star resort with multiple pools, spa, and ocean-facing suites. The most impressive of the Hotel Zone properties.
€€€ Best Luxury Hotels
Belmond Reid's Palace
Hotel Zone
Legendary cliff-top palace hotel since 1891 where Churchill painted. Old-world elegance, subtropical gardens, and unmatched Atlantic views.
Quinta da Casa Branca
City Center (edge)
Romantic manor house estate with award-winning restaurant, lush gardens, and contemporary villa suites. Madeira's most refined address.
✦ Unique & Boutique Stays
Quinta Jardins do Lago
Above Funchal
Historic estate with 19th-century manor, botanical gardens, swan lake, and peacocks roaming the grounds. Living museum meets boutique hotel.
Smart Booking Tips for Funchal
- 1 Book 2-3 months ahead for Christmas/New Year - Funchal's fireworks are world-famous
- 2 April-October offers best weather; winter is mild but rainier
- 3 Many hotels include generous breakfast buffets - factor into comparisons
- 4 Historic quintas (manor houses) offer unique Madeira experience
- 5 Consider levada walks accessibility when choosing location
- 6 Rent a car to explore the island - parking in Funchal is challenging but manageable
Why you can trust this guide
We built this guide using recent climate data, hotel price trends, and our own trips, so you can pick the right month without guesswork.
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More Funchal Guides
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Best Time to Visit
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Things to Do
Top attractions and hidden gems
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Overview
Complete travel guide for Funchal: top things to do, itineraries, and typical costs.