Open Travel Guide
Hotels in Funchal

Best Hotels in Funchal 2026

Find the perfect place to stay in Funchal, from budget stays to luxury hotels.

By Updated

This guide covers 82+ hotels and places to stay in Funchal — Les Suites at The Cliff Bay, by PortoBay, Quinta Jardins do Lago and Quinta da Casa Branca top the list. Every recommendation carries its practical details: typical costs, the best time to visit, and what to know before you commit.

Funchal travel guide: where to stay, what to do, and where to eat in Funchal, Madeira, Portugal.

Accommodation overview

Funchal offers the widest choice of accommodation on Madeira, from five-star clifftop resorts in the Hotel Zone along Estrada Monumental to boutique hotels and guesthouses in the cobbled Zona Velha, manor-house quintas in São Gonçalo and Monte, and budget hostels near the centre. Dorm beds start around €20 to €30, mid-range four-star hotels run roughly €105 to €190 per night, and landmark five-star properties such as The Cliff Bay and Reid's Palace start near €285. Hotel Zone resorts suit pool and sea-view stays, the Old Town suits restaurants and nightlife on foot, and the hill areas suit quiet garden stays with a short taxi or cable car ride to the centre. New Year's Eve and the Flower Festival period book out early.

Hotels by budget

Find accommodation that fits your travel budget.

Budget-friendly

Mid-range

Mid-range

The Views Baía

$$$ 4.3/5

The Views Baía is a 4-star adults-only hotel in Hotel Zone (Lido / São Martinho), Funchal.

indoor pooloutdoor poolspa with sauna and steam room
Check rates on Booking.com

Luxury

Luxury

The Cliff Bay (PortoBay)

$$$$ 4.8/5

The Cliff Bay (PortoBay) is a 5-star hotel in Hotel Zone (Lido / São Martinho), Funchal. Published double-room rates start from about €285 (~$328) per night.

indoor pooloutdoor poolchildren's pool
Check rates on Booking.com
Luxury

Savoy Palace

$$$$ 4.5/5

Savoy Palace is a 5-star hotel in Hotel Zone (Lido / São Martinho), Funchal.

2 indoor pools2 outdoor poolsspa with sauna and steam room
Check rates on Booking.com

Best neighborhoods to stay

Choose your base based on your interests and travel style.

Central & convenient

City Center

The heart of Funchal with easy access to main attractions, restaurants, and transportation.

Best for: First-time visitors, short stays

Historic & atmospheric

Old Town

Traditional architecture and local character. Walking distance to historical sites and authentic dining.

Best for: Culture enthusiasts, photographers

Our top picks

Handpicked recommendations for every type of traveler.

Luxury

The Cliff Bay (PortoBay)

$$$$ 4.8/5Hotel Zone (Lido / São Martinho), Funchal

The Cliff Bay (PortoBay) is a 5-star hotel in Hotel Zone (Lido / São Martinho), Funchal. Published double-room rates start from about €285 (~$328) per night.

indoor pooloutdoor poolchildren's pool
Check rates on Booking.com

Booking tips

Get the best deals and avoid common mistakes.

Tip

Book New Year's Eve stays months ahead; Funchal's fireworks make it the island's busiest period

Tip

Hotel Zone properties sit on cliffs above the sea; check for lifts or steep walks to the Lido promenade before booking

Tip

Zona Velha and São Pedro hotels are on steep, cobbled streets; the seafront and cable car are close but luggage is easier by taxi

Tip

Many Hotel Zone resorts sell half board or all-inclusive rates; compare with room-only rates and the restaurants in the old town

Alternative accommodations

Beyond traditional hotels, consider these options.

Alternative

Guesthouses

Family-run guesthouses offer authentic local experiences and often include home-cooked meals. Great for cultural immersion.

Alternative

Serviced apartments

Ideal for longer stays or families. Kitchen facilities help save money and provide flexibility.

Alternative

Hostels

Budget-friendly option for solo travelers. Dorms and private rooms available with social common areas.