The Lighthouse

Are you going on a trip soon and are you looking for the best areas to stay in Madeira?

Madeira is a little paradise on earth, sometimes nicknamed “the garden of the Atlantic”. Madeira is full of wonders which we invite you to discover in this post: 30 BEST THINGS TO SEE IN MADEIRA.

However, choosing the right place to stay during your holidays in Madeira is essential to make the most of it. This guide lists the top areas to stay in Madeira. Check it out!

If you don’t have time to read to entire article, see our top 3 picks below:

Castanheiro Boutique Hotel: This four-star hotel with an outdoor swimming pool on the roof overlooking Funchal is stunning. More info here.
Casas da Levada (one of our favorite hotels ever!): this is the most charming property we ever stayed in. The pool is stunning and we loved the hobbit bar. Check out the availability now.
Saccharum – Resort & Spa – Savoy Signature: If you like getting pampered during your holiday in Madeira, especially after all those hikes, then opt for Saccharum – Resort & Spa – Savoy Signature!

Best Places to Stay in Madeira?

Streets of Funchal

Funchal is a gorgeous city with many things to visit. It is one of the best areas to stay to Madeira.

In the heart of Funchal, you have the old city center full of historical monuments, a sumptuous cathedral that dates back to the 16th century, and the Jesuit college which is full of history. You can also visit the old episcopal palace which stands which hosts an art museum where you can contemplate various works of Flemish art.

Then you can visit the botanical garden at Monte Palace Tropical Garden (full guide here), by taking the cable car from Funchal and to admire the breathtaking panoramic views of the city and the ocean.


Here are our favorite hotels in Funchal:

This four-star hotel with an outdoor swimming pool on the roof overlooking the city is absolutely stunning. From the hotel, you can walk to the historic town and enjoy Funchal at the fullest!

The rooms are very cozy, breakfast delicious, and the service top-notch! This is one of our favorite hotels in Funchal.

Located right by the harbor in Funchal, this charming hotel has all you need for a perfect holiday in Madeira! This hotel offers panoramic views over the Atlantic. It has 2 pools, a spa center, restaurants etc.

We love the location of Santa Maria as it’s in the heart of Funchal but with a stunning view of the sea.

Câmara de Lobos

Located to the west of Funchal, this tiny fishing town has managed to retain its authenticity over the years. Its pleasant little fishing port with its colorful boats is the perfect place to taste great seafood dishes such as the scabbardfish, one of our favorite meals in Madeira!

Câmara de Lobos is also distinguished by a flourishing historical past and is home to the São Sebastião church and the Nossa Senhora da Conceição chapel, among others, two must-see places in Madeira.

Its proximity to Cabo Girao, the highest cliff in Europe with a stunning viewpoint on a glass platform (full post here), and other main sites make Câmara de Lobos one of the best areas to stay in Madeira.


Where to stay in Câmara de Lobos? Here are our favorite hotels

Best hotels in Câmara de Lobos

One of our favorite hotels in Madeira is actually located in Câmara de Lobos: Pestana Churchill Bay. This old fish market was transformed into a gorgeous hotel right by the harbor.

The location is perfect, the hotel is stunning and they have an amazing rooftop pool overlooking Câmara de Lobos.

Best hotel in Câmara de Lobos

Another fabulous boutique hotel in Câmara de Lobos is Pestana Fisherman Village. This hotel is located in he picturesque historic center.

The hotel offers several living rooms, a library, a cloister, a patio with a water mirror and a terrace with a panoramic swimming pool on the rooftop.

3. Porto Moniz, the best area to stay in the north of Madeira

Natural pools in Porto Moniz

Located in the northwest of Madeira, this city is known for its magnificent natural pools formed by the lava of volcanoes. It is the perfect place to stay in Madeira to recharge your batteries and admire the masterpieces that nature has carved on this part of the island.

There are also countless of seafood restaurants and various cafes in Porto Moniz.

From there you can easily reach Seixal (full guide here), Santana, Fanal Forest, Miradouro do Véu da Noiva, and a lot more.

Hiking enthusiasts will not be able to resist the charms of the Levada da Ribeira da Janela, which is one of the most splendid walks to do on the island. This route will allow you to discover a wide range of panoramas, shared between green valleys and abundant mountains.

Therefore, Porto Moniz is one of the best areas to stay in Madeira.


Here is our selection of the best hotels in Porto Moniz:

Best hotel in Porto Moniz Madeira

Situated in the center of Porto Moniz, Pearls Beach Apartment combines luxury with an amazing view of the ocean. This place is perfectly located, only a few minutes walk to the nature pools! The apartment has its own kitchen, living room, and outdoor space. ok here

Best places to stay in Madeira_Porto Moniz

If you want the ultimate comfort and luxury while in Madeira, we highly recommend this stunning villa located in the center of Porto Moniz.

The villa is composed of three bedrooms, two of which are en-suites, a living room, TV room, a barbecue and other spaces for comfort and leisure. If you are a group or big family, don’t hesitate, this place would be perfect for you.

Casa de Levada is the most charming property we ever stayed in. The room is so beautiful with a stunning view on Madeira and the ocean. Every little details in the room are so thoughtful.

The pool is stunning and we loved the hobbit bar. What a fantastic place to stay. Can only highly recommend anyone to stay here.


Cabo Girao

As Madeira is a rather large island, your base may depend on whether or not you decide to rent a car. If you do not want to rent a car, then we highly recommend choosing Funchal as your place to stay in Madeira. From there, you can join many guided tours or public buses to visit some of the main sights.

However, if you have a car in Madeira, then you can venture a bit further from Funchal in quieter areas such as Câmara de Lobos or Porto Moniz.

To find out more about Madeira, we listed the 30 best things to see here.

If you have any questions about Madeira, feel free to drop a comment below. We respond relatively quickly.

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  1. Hello
    I am traveling to Porto, Portugal Oct 5,2023 with my daughter. We are celebrating my 70 and her 30 birthdays. We spend a week there then to Lisbon and on to Albufeira to explore algarve coast.
    My daughter showed me Madeira information and we are thinking about skipping the Algarve to fly to Madeira for a week. I am a healthy 70 year old and my daughter is very fit and trim. I love the beaches and mountains. (Raised on the Atlantic and live in the Rockies for years).

    Could you off me some guidance?
    Thank you,
    Joan Dwulet