No more huge hotel complexes that make you get lost! Discover our exclusive selection of the best boutique hotels in Funchal and Madeira.
In this article, we spotlight small-scale establishments that combine charm, comfort and top-of-the-range facilities. Browse through our photos and let yourself be seduced by these unique places!
This opinion is completely independent, based on our experiences. We made our own choices, visited the area anonymously, and paid our bills in full.
Charming boutique hotels in Madeira
Perched inland or along the coast, Madeira is full of charming hotels! Some are independent, others are part of hotel chains, but all have a real soul. Most establishments boast breathtaking views of the Atlantic Ocean, even those more isolated outside Funchal.
Although we haven’t had the chance to try them all yet, here are our favorites so far. We’ll be adding to this list as we make new discoveries!
1. Hotel Quinta Jardins do Lago (Funchal, 5*)
Why stay there?
A veritable jewel of greenery nestled in the heights of Funchal, the Hotel Quinta Jardins do Lago seduced us with its magnificent garden and outdoor swimming pool topped by a bridge. We were intoxicated by the beauty of the place and its peaceful atmosphere. Colorful climbing plants adorned the facade of the historic 18th-century building in which we stayed.
Our room had plenty of character, and a pleasant balcony overlooking the lush vegetation. We liked the decor, which retained the charm of the old days. Between the four-poster bed, the floral-patterned sofa, the paintings hanging on the walls in gilded frames, and the vintage decor elements, it was love at first sight! In fact, it’s one of our favorite 5-star hotels in Madeira. In addition to the exceptional setting, you’ll enjoy the hotel’s top-of-the-range facilities. Fancy a sauna or jacuzzi session at the end of the day?
Practical information
- City: Funchal,
- Range: 5 stars,
- All-inclusive available: no,
- Facilities: swimming pool, restaurant, Jacuzzi, Turkish bath, sauna, gym, landscaped garden, communal lounge, games room, billiards, shuttle service,
- Parking: yes, free.
See photos, prices and availability – and book!
2. Three House aparthotel (Funchal, 4*)
Why stay there?
The Three House apartment hotel totally won us over! It is one of our favorite establishments in Funchal. In addition to its central location, it boasts a magnificent rooftop with a bar and swimming pool. We spent a delightful time looking out over the city’s rooftops and the ocean, while sipping a cocktail with our feet in the water. At dusk, the sun’s reflections were reflected in the pool, making the scene all the more magical!
The apartments are fully equipped and, above all, tastefully decorated. The owner hunts for objects on his travels around the world to incorporate into his decor. We loved the concept! The kitchen appliances are by Smeg, bringing harmony to the room. We fell in love with this charming, unique and well-equipped apartment!
Practical information
- City: Funchal,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: rooftop with pool and bar, laundry, reception store,
- Parking: yes, private and free.
See photos, prices and availability – and book!
3. Hotel Les Suites at The Cliff Bay (Funchal, 5*)
Why stay there?
Located in the Sao Martinho district west of the city center, Hotel Les Suites at The Cliff Bay offers an intimate, luxurious setting. Offering a selection of 23 suites, it combines comfort, elegance and modernity. It also houses the Restaurant Avista, renowned for its gourmet Mediterranean cuisine. In fact, it’s one of our favourite restaurants in Funchal!
Very well equipped, the hotel won us over with its exceptional view of the Atlantic Ocean. We could have stayed for long minutes, even hours, contemplating the landscape while reading a book. To relax, head for the spa area or 1 of the 3 jacuzzis on site!
Practical information
- Neighborhood: Funchal,
- Range: 5 stars,
- All-inclusive available: yes,
- Facilities: swimming pool, private ocean access, restaurant, spa area, 3 Jacuzzis, gym, Pilates room, library and games room,
- Parking: yes, free.
See photos, prices and availability – and book!
4. Hotel Quinta da Casa Branca (Funchal, 5*)
Why stay there?
No sooner had we entered the Botanical Gardens than we were seduced by the place! Tucked away in a verdant setting, this charming 5-star establishment offers luxurious accommodation. For an even more unique experience, opt for one of the manor’s suites! Combining authenticity, charm and history, they will transport you to another era.
Hotel Quinta da Casa Branca is renowned for its elegant architecture, magnificent gardens, The Dining Room Restaurant, and top-of-the-range wellness facilities, such as a spa and outdoor pool. Take advantage of this peaceful environment to relax and discover the island’s flora!
Practical information
- City: Funchal,
- Range: 5 stars,
- All-inclusive available: yes,
- Facilities: swimming pool, restaurants, wellness center and spa, gym, botanical garden,
- Parking: yes, free and private.
See photos, prices and availability – and book!
5. Hotel 1905 Zino’s Palace (Punta do Sol)
Why stay there?
Nestled in the hills above Punta do Sol, this charming hotel overlooks the coastline. You won’t want to miss its pink facade with black shutters. In fact, it reminded us of an elegant, life-size doll’s house. What do you think?
The setting is also exceptional. On one side, you’ll see Madeira’s mountains, and on the other, the ocean as far as the eye can see. We were captivated by the panoramic view from the terrace. The reception area was tastefully decorated, inviting you to read and relax. However, the road to the palace is very narrow and steep.
Practical information
- City: Punta do Sol,
- Range: prestigious,
- All-inclusive available: no,
- Facilities: swimming pool, restaurant, panoramic terrace, lounge area,
- Parking: yes, private and free.
See photos, prices and availability – and book!
6. Yeotown Health Retreat Hotel (Arco da Calheta)
Why stay there?
Overlooking Arco da Calheta, the Yeotown Health Retreat Hotel is truly secluded. It’s a haven of peace that respects the environment, where you can recharge your batteries 100%. We had to venture inland, taking very narrow streets uphill to reach it. However, we didn’t regret the detour!
As you swim in its small outdoor pool, you’ll gaze out over the sumptuous natural landscape stretching all the way to the ocean. The accommodations are rather unusual, as they are set up in comfortable chalets. It’s a magical place with a special atmosphere. It invites you to relax and unwind. Here you can practice yoga and meditation. The establishment also offers wellness retreats.
Practical information
- City: Arco da Calheta,
- Range: prestigious,
- All-inclusive available: no,
- Facilities: swimming pool, restaurant, landscaped garden, panoramic terrace, spa area, meditation room,
- Parking: yes, public and free.
See photos, prices and availability – and book!
7. Hotel Socalco Nature (La Calheta)
Why stay there?
Overlooking La Calheta, Hotel Socalco Nature offers rooms and apartments with kitchenette, nestled in atypical dwellings in the heart of a vineyard. You’ll enjoy a truly unique experience imagined by chef Octávio Freitas, whose ambition is to promote Madeira as a gastronomic destination. He runs Restaurant Desarma, our favorite Michelin-starred restaurant in Funchal.
We were very pleasantly surprised by the view of the resort and La Calheta Beach. This singular place is full of character! You’ll enjoy a variety of activities, including a visit to the organic garden, cooking classes and a hands-on workshop on probiotics. However, you should be aware that the establishment is rather difficult to access. The last stretch of road is really narrow and downhill. It’s not easy to turn around once you’ve reached the bottom.
Practical information
- City: La Calheta,
- Range: prestigious,
- All-inclusive available: no,
- Facilities: outdoor pool, restaurant, culinary activities, panoramic terrace, vineyard, organic garden,
- Parking: yes, free.
See photos, prices and availability – and book!
8. Hotel Atrio (Estreito da Calheta, 4*)
Why stay there?
Set on the edge of a eucalyptus forest, this charming rural hotel extends over 10,000m2 and boasts exceptional views of the Atlantic Ocean. Surrounded by extensive, well-kept grounds, it features 22 different rooms, each with a terrace or balcony offering stunning views. We were seduced by this incredible open-air garden, and the buildings that blend perfectly into the environment without distorting it.
It’s a haven of peace for nature lovers and hikers in search of tranquillity, far from the hustle and bustle of Funchal. The restaurant serves a variety of home cooking, including vegetarian options. In addition to its unique setting, this green setting offers top-of-the-range amenities: heated outdoor pool with view, sauna and bar with fireplace.
Practical information
- City: Estreito da Calheta,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: swimming pool, restaurant, landscaped garden, sauna, massages and treatments,
- Parking: yes, private and free.
See photos, prices and availability – and book!
9. Castanheiro Boutique-Hotel (Funchal, 4*)
Why stay there?
Ideally located in the heart of Funchal’s historic center, the Castanheiro Boutique-Hotel won us over with its superb rooftop pool, bar and Jacuzzi. This is one of our favorite hotels in Funchal! We contemplated the 360° view over the city’s rooftops, while enjoying the hot tub. It was a particularly pleasant and relaxing moment. Are you tempted?
The Til Spa also won us over with its indoor pool featuring integrated seating and jets. The Tipografia Restaurant is on the first floor and is one of our favorite restaurants in the city. Throughout the establishment, the decor was elegant, highlighting the traditional architecture of the colorful buildings. Our room was particularly large, with 3 small balconies overlooking the street. We have very fond memories of our stay!
Practical information
- City: Funchal,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: rooftop with pool and Jacuzzi, skybar, restaurant, spa area with pool, bar with live music,
- Parking: yes, private and chargeable.
See photos, prices and availability – and book!
10. Hotel Pestana Vila Lido (Funchal, 4*)
Why stay there?
Off-center from downtown Funchal, this hotel boasts a privileged coastal location. Its architecture took us by surprise! The main building is circular and multi-storey. It dominates the bay.
Between the huge outdoor pool, private ocean access, restaurant and other amenities, we loved staying here. Our room had a panoramic balcony. We fell asleep, lulled by the movement of the waves. This unique experience leaves us with an unforgettable memory! Although it’s a hotel chain, this establishment has some unique features that really set it apart from the rest.
Practical information
- City: Funchal,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: swimming pool, ocean access, restaurant, sauna, steam room, gym,
- Parking: yes, private and chargeable.
See photos, prices and availability – and book!
11. Hotel Quinta da Penha de Franca (Funchal, 4*)
Why stay there?
Located west of Funchal city center, Hotel Quinta da Penha de Franca faces the bay. It boasts top-quality facilities, including a pleasant garden, 2 saltwater pools and 2 restaurants. We found its location very strategic, being so close to the port. The city’s main tourist attractions are within easy walking distance.
The decor is traditional. In this human-scale hotel, you’ll have the opportunity to enjoy a more authentic, local experience. It offers rooms, suites and villas. It’s ideal for families looking for comfort and relaxation in a peaceful setting.
Practical information
- City: Funchal,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: swimming pools, restaurants, bars, landscaped garden, lounge area, billiards table,
- Parking: yes, private and free.
See photos, prices and availability – and book!
12. Hotel Quinta Alegre (La Calheta, 4*)
Why stay there?
Perched high above La Calheta, Hotel Quinta Alegre charmed us with its incredible outdoor pool overlooking the city and the ocean. Built by hikers, the establishment will help you plan your hiking excursions. Between 2 hikes, you’ll enjoy this unspoilt green setting.
We were won over by the intimate, family atmosphere of the place. The restaurant serves regional dishes based on fresh produce. Some even come directly from the hotel garden. The decor is fairly traditional. You’ll discover wooden furniture, wicker armchairs and, above all, colourful plants!
Practical information
- City: La Calheta,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: swimming pool, restaurant, gym with table tennis, bar, landscaped garden, library lounge, massages,
- Parking: yes, private and free.
See photos, prices and availability – and book!
13. Appart’hôtel The Wine Lodges (Funchal)
Why stay there?
Adjacent to Blandy’s Wine Lodge, this aparthotel is ideally located in the heart of Funchal. After a guided tour and wine tasting, it’s just a short walk to your accommodation. You’ll enjoy a spacious, fully-equipped apartment with a small balcony or a view of Funchal’s Municipal Garden, subject to availability.
Thanks to the practical, functional kitchen, you’ll save money on your meals. It’s an option we particularly recommend for families, to reduce the food budget. The homes have been restored to preserve the original architecture of the building, while integrating modern conveniences.
Practical information
- City: Funchal,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: board games, shuttle service,
- Parking: yes, chargeable.
See photos, prices and availability – and book!
14. Appart’hôtel Pestana Casino Studios (Funchal, 4*)
Why stay there?
Part of a major hotel chain, this aparthotel offers top-of-the-range facilities and a unique stay experience. You’ll have free access to the swimming pool, spa area, restaurants and tennis courts at Hotel Pestana Casino Park. In our opinion, its location is really appreciated. The hypercentre is within easy walking distance.
The establishment offers fully-equipped studios, some with sea views. Accommodations provide an excellent level of comfort for travelers. The decor is bright and cheerful, with lots of colorful touches and patterns. In the reception area, we loved the wall painted with huge flowers, the woven wicker armchairs, and the very organic wooden bench. As its name suggests, it’s located close to the Funchal Casino, so take note!
Practical information
- City: Funchal,
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: swimming pool, access to spa area, restaurants and tennis courts at Hotel Pestana Casino Park,
- Parking: no.
See photos, prices and availability – and book!
Other cheap options: charming apartments in Funchal
If you’re on a tighter budget, we’ve selected 2 other options for you:
- Tourist apartments Avenue Park (downtown): fully equipped, conveniently located, with private parking – see prices, photos and availability.
- Madeira Old Town apartments: functional, comfortable accommodation close to Santiago Fortress – see prices, photos and availability.
PLAN YOUR STAY IN Madeira
Best of
Things to do in Madeira
Most beautiful viewpoints
Madeira’s most beautiful beaches
Most beautiful gardens
Natural pools
Most beautiful hikes
Most beautiful roads
Secret places
Practical advice
Getting around Madeira
Rent a car in Madeira
Driving in Madeira
Itineraries: 3 days – 4 days – 5 days – 6 days – 7 days – 10 days
