With its picturesque alleyways, Funchal’s old town is full of charm. Would you like to stay in the historic center and enjoy top-quality facilities? Discover our selection of the 7 best hotels in old Funchal to find the one that will meet your expectations!
In this article, you’ll also find our useful tips for an unforgettable experience, as well as some more affordable options.
This opinion is completely independent, based on our experiences. We made our own choices, visited the area anonymously, and paid our bills in full.
Hotels in Funchal’s old town: summary
Why stay in Funchal’s historic center?
In our opinion, Funchal’s old town is a must-see place to discover the history, culture and unique atmosphere of Madeira’s capital. It’s a charming historic district filled with narrow cobbled streets, colorful buildings and lively squares. It’s home to many places of interest, small stores, restaurants, bars and cafés. You’ll have a choice of excellent hotels with top-quality amenities, including rooftops, swimming pools, spa areas and restaurants.
Benefits:
- Good choice of hotels, restaurants and shops nearby.
- Cultural center: the main museums and other tourist attractions are concentrated here.
- Portuguese architecture: we were seduced by the historic buildings.
- Local atmosphere: discover the daily life of the local people.
Disadvantages:
- Very busy: you’ll come across a lot of tourists.
- Potential noise: this is a lively area, so there may be some noise pollution.
- Limited parking: if you’re traveling by car, parking can be difficult.
- Higher cost: prices are generally higher in the historic center.
Our favorite hotels:
Before discovering our detailed reviews of each of the establishments we’ve selected, take a look at our 3 favorite addresses:
- Appart’hôtel Three House: our favorite! Beautifully decorated, fully-equipped apartments with swimming pool and rooftop bar – see prices, photos and availability.
- Castanheiro Boutique-Hotel: 4-star establishment with superb rooftop pool, bar and Jacuzzi – see prices, photos and availability.
- Hotel Barcelo Funchal Old Town: luxury hotel with an incredible swimming pool overlooking the city – see prices, photos and availability.
1. Three House apartment hotel (4 stars)
Why stay there?
The Three House apartment hotel totally won us over! It’s part of our article on the island’s best boutique hotels. 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
- 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!
OUR TIPS FOR RENTING YOUR CAR AT Madeira
- Compare prices on our preferred platform: DiscoverCars – one of the best rated sites.
- Take a car with a good engine for hilly roads, but not too big for manoeuvring.
- There’s plenty of demand and few cars, so book early.
2. Castanheiro Boutique-Hotel (4 stars)
Why stay there?
Ideally located in the heart of the 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 Madeira’s capital. 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
- 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!
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3. Hotel Barcelo Funchal Old Town (5 stars)
Why stay there?
Ideally located in the heart of Funchal’s historic center, the hotel is within easy walking distance of the city’s main tourist attractions. You can also enjoy the lively atmosphere of the historic center.
During our stay, we particularly appreciated the size of the bed and the small balcony overlooking the alley. Our room combined comfort, sobriety and elegance. We loved the rooftop, with its bar and swimming pool. As you swim, you can admire the orange roofs of Madeira’s capital. This establishment is one of our favourite luxury hotels on the island!
Practical information
- Range: 5 stars,
- All-inclusive available: yes,
- Facilities: rooftop pool and bar, restaurant, lobby bar, gym, artworks on display,
- Parking: no.
See photos, prices and availability – and book!
4. Hotel Pestana CR7 (4 stars, Cristiano Ronaldo)
Why stay there?
As Cristiano Ronaldo fans will have gathered, this is a collaboration between the Pestana hotel chain and the famous footballer. Born in Funchal, the Portuguese player is a real source of pride for the locals. We discovered this 4-star establishment on our way to the CR7 Museum, which traces his career.
Free admission to the museum. There’s also a rooftop outdoor pool, sauna and Jacuzzi, and CR7 Corner Restaurant. The modern, geometric architecture of the place really appealed to us!
Practical information
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: swimming pool, restaurant, gym, outdoor sauna and jacuzzi, free admission to the CR7 Museum,
- Parking: yes, public and paying.
See photos, prices and availability – and book!
OUR FAVORITE ACTIVITY IN Madeira
Catamaran tour to see dolphins and Madeira’s giant cliffs.
5. Hotel Porto Santa Maria – PortoBay (4 stars, adults only)
Why stay there?
We recommend staying at the Hotel Porto Santa Maria. Its seafront location offers magnificent views of the Atlantic Ocean. In fact, just a few minutes’ walk will take you to the Praia do Almirante Reis or the Fortress of Santiago.
Exclusively for adults, this 4-star establishment is very peaceful. It boasts top-of-the-range facilities, including an outdoor and indoor swimming pool, a restaurant and a relaxation area. It’s the perfect place to relax!
Practical information
- Range: 4 stars,
- All-inclusive available: yes,
- Facilities: swimming pools, jacuzzi, restaurant, spa area, gym,
- Parking: yes, private and chargeable.
See photos, prices and availability – and book!
6. The Wine Lodges
Why stay there?
Adjacent to Blandy’s Wine Lodge, this apartment hotel is ideally located in the heart of the city. 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
- Range: 4 stars,
- All-inclusive available: no,
- Facilities: board games, shuttle service,
- Parking: yes, chargeable.
See photos, prices and availability – and book!
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7. Hotel Madeira (3 stars)
If you’re looking for more affordable accommodation, we suggest you stay at the Hotel Madeira. This 3-star establishment boasts a rooftop bar and swimming pool. While gazing out over the rooftops of Funchal, enjoy a pleasant swim. Ideally located, you can easily explore the historic center and the city on foot.
During our stay, we were lucky enough to have a small balcony overlooking St. Andrew’s Church. Our room was relatively small, but comfortable and cosy.
Practical information
- Range: 3 stars,
- All-inclusive available: no, but half-board service is available from 6:30 pm to 9:30 pm for a fee and subject to reservation,
- Facilities: rooftop with pool and bar, billiards room, library corner,
- Parking: yes, chargeable.
See photos, prices and availability – and book!
Other accommodations in Funchal’s historic center (inexpensive)
If you’re on a tighter budget or planning a group trip, we’ve selected some other interesting options for you:
- Madeira Old Town apartments: functional, comfortable accommodation close to Santiago Fortress – see prices, photos and availability.
- Studios Funchal Old Town – Historic Atlantic View: very well located accommodations, close to the waterfront – see prices, photos and availability.
- Ferreiros by Heart of Funchal apartments: beautifully decorated, spacious and centrally located – see prices, photos and availability.
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