Madeira Island, known as the “Pearl of the Atlantic,” is a lush, volcanic paradise in the middle of the ocean. Beloved for its dramatic landscapes, warm climate, and vibrant culture.
This Autonomous Region of Portugal offers visitors a perfect blend of adventure and leisure. With its year-round spring-like weather, charming villages, terraced vineyards, and delicious cuisine, Madeira has become a top European destination. At the heart of it all lies Funchal, the capital city, which serves as the island’s main hub for culture, dining, and accommodation.
Whether you’re planning a romantic getaway, a family vacation, or a solo adventure, choosing the right place to stay is essential. If you’re wondering where to stay in Funchal, you’re in luck. The city center boasts a variety of accommodation options, from luxurious hotels to charming hidden gems that offer an authentic Madeiran experience.
In this guide, we present seven outstanding places to stay in Funchal’s center, each with its own unique charm.
Where to stay in Funchal? 7 Suggestions
1. Hotel Quinta Bela São Tiago
Nestled in the Old Town of Funchal, Hotel Quinta Bela São Tiago is a hidden gem that combines historical charm with modern amenities. Housed in a beautifully restored 19th-century manor house, the Hotel offers a peaceful escape just steps from the bustling local markets and seaside promenade.
Surrounded by lush gardens and offering stunning ocean views, this boutique hotel has a serene ambiance. Guests can enjoy the outdoor pool, sauna, and on-site restaurant that serves traditional Madeiran dishes. Its location in the Old Town makes it ideal for those who want to experience Funchal’s authentic character.
2. Hotel The Vine
Modern luxury meets design innovation at Hotel The Vine, a chic five star hotel located in the heart of Funchal. With interiors inspired by Madeira’s wine-making heritage and the natural beauty of the island, The Vine is perfect for design-conscious travelers.
Guests can unwind at the rooftop infinity pool, enjoy a cocktail at the bar, or indulge in a gourmet experience at the award-winning restaurant. The hotel also offers an excellent spa and easy access to shopping and cultural attractions. It’s an excellent option when deciding where to stay in Funchal if you want both style and substance.
3. Quinta da Penha de França
Offering a mix of traditional Madeiran architecture and lush gardens, Quinta da Penha de França is a peaceful retreat close to the city center. This charming property is actually divided into two parts: the main Hotel and its seaside annex, both offering a unique experience.
With ocean-facing pools, excellent dining, and spacious rooms decorated in classic style, this Hotel feels like a private sanctuary. The property’s tranquil environment makes it hard to believe you’re just minutes from Funchal’s main attractions. For those looking for understated elegance, this hotel is a solid choice.
4. PortoBay Santa Maria Hotel
Ideal for adults seeking a quiet and relaxing environment, PortoBay Santa Maria Hotel is located directly by the sea in Funchal’s Old Town. This four star hotel offers spacious rooms, a lovely garden, an indoor and outdoor pool, and a rooftop terrace with panoramic views of the harbor.
Its proximity to the cable car station, the Farmers’ Market (Mercado dos Lavradores), and various restaurants makes it incredibly convenient for tourists. With its peaceful ambiance and prime location, it’s a fantastic answer to the question of where to stay in Funchal for those seeking comfort and convenience.
5. Hotel Orquídea
For budget-conscious travelers who still want comfort and location, Hotel Orquídea offers excellent value in central Funchal. Located near the Santa Clara Convent and a short walk from the cathedral and the Mercado dos Lavradores, this three star Hotel is simple, clean, and convenient.
Its rooftop terrace is a pleasant surprise, offering panoramic views of the city and the bay, an ideal spot to unwind after a day of sightseeing. The rooms are spacious, and the service is friendly and helpful. Hotel Orquidea is a smart choice for travelers wanting affordability without sacrificing access to Funchal’s main attractions.
6. Quinta da Casa Branca
Tucked away in a serene garden estate, Quinta da Casa Branca is a hidden gem in central Funchal that feels worlds away from the bustling streets. This luxury boutique Hotel sits on a former banana plantation and is surrounded by tropical gardens, providing an atmosphere of tranquility and exclusivity.
The Hotel features two elegant buildings. One modern and minimalist, the other a classic manor house with timeless decor. Guests can unwind at the spa, enjoy fine dining at the restaurant, and relax by the pool under the shade of towering palm trees. Quinta da Casa Branca is ideal for travelers seeking peace, privacy, and close proximity to the city center.
7. Sé Boutique Hotel
Located just steps from the iconic Funchal Cathedral, Sé Boutique Hotel is a chic, art-inspired Hotel that reflects the city’s vibrant energy. This Hotel combines modern design with local culture, showcasing works from Madeiran artists and offering a trendy atmosphere ideal for creative minds and city explorers.
The rooms are stylish and comfortable, and the rooftop bar offers stunning views of the Old Town and harbor. Its prime location allows guests to explore the nearby market, museums, and cafes with ease. For those asking where to stay in Funchal that’s both central and culturally enriching, Sé Boutique Hotel is a great option.
Conclusion about Where to stay in Funchal
Funchal’s diverse accommodation options cater to all tastes and budgets, from historic estates and luxury resorts to modern boutique Hotels and hidden gems. Each Hotel mentioned offers something unique. Whether it’s a central location, exceptional service, or a tranquil garden oasis.
And remember, no matter where you decide to stay, having a rental car from 7M Rent a Car will enhance your experience. With the freedom to explore not just Funchal but the entire island at your own pace, you can uncover the magic of Madeira far beyond the city limits.
Still wondering where to stay in Funchal? Choose any of these seven options, and you’ll be sure to enjoy the comfort, culture, and hospitality that make this city one of Portugal’s top destinations.
Discover more about the Top 10 Madeira Island Hotels for an Unforgettable Vacation, in our guide.
