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Are you wondering Where to stay in Madeira to fully enjoy your stay on this magnificent island? Between volcanic landscapes, authentic villages and breathtaking panoramas, choosing the right one accommodation in Madeira can quickly become a real headache. Should we prefer a hotel in Madeira in Funchal, opt for a quieter accommodation in the north, or find the best Neighborhood in Madeira according to your travel style?
In this comprehensive guide, I'm going to help you know Where to sleep in Madeira according to your desires, your budget and the length of your stay. Whether you are looking for a accommodation in Madeira cheap, a charming hotel or accommodation overlooking the ocean, here you will discover the best places to put your bags as well as all our advice to make the right choice.
To properly prepare your trip to Madeira, I also invite you to consult my other articles:
- Visit Madeira in 6 to 7 days: complete guide, tips and budgets in 2026
- Getting around Madeira: a comprehensive guide to transport in 2026
🗺️ The best places to stay in Madeira
In my opinion, there are 4 places to stay in Madeira where you need to look for your accommodation.
Funchal: the best place for a first stay
Funchal is the main city of Madeira where the main activities are concentrated.
From the center, you can easily travel to other areas of the island using public transport, as well as taxis.
For a stay of 6 to 7 days in Madeira, you can stay in Funchal to get around quite easily.
If you decide to put your bags down with the intention of not moving elsewhere, then this is the place to stay!
Porto Moniz: the best place for a stay in the heart of nature
If you want to stay in a fairly lively place but in a city surrounded by nature, then Porto Moniz is a great choice to stay for a few days.
Located in the north-west of Madeira, it is a fairly isolated place, but many tourists come to visit it for its famous natural pools.
Around the city, you have several natural places to discover, either to hike or simply stroll through less touristy villages.
Porto Moniz is therefore optimal for people who want to be in a seaside resort to enjoy both the pools, the beaches as well as nature walks!
Jardim do Mar: the best place to explore western Madeira
Jardim do Mar is not a very well known place, and yet, I fell in love with this small and very picturesque village (you will see why below!).
Located in the southwest of the island, it is a remote place with very few tourists. The city is especially recognized by surfers, because the waves are really huge.
For people looking for peace and quiet for a few days, Jardim do Mar is a great choice.
However, note that the village is only accessible by car or scooter.
Sao Vicente: the best place to stay in North Madeira
Madeira is not always a pleasure to get around by transport. Between the West of the island and the East, there is only one road that will allow you to cross it.
Strategically, Sao Vicente is for me an ideal place on various levels: the city is located in the North Center, it is a very local place with lots of beautiful little corners, and very local restaurants to taste Madeiran flavors.
You can then travel West one day, then East another day to optimize your travel time.
But Sao Vicente is also a place surrounded by nature and mountains with much fewer tourists than Funchal!
🏨 Where to sleep in Madeira according to your budget
Depending on the choice of where you want to sleep, I am going to give you my few accommodations and hotels that you could choose according to your budget.
NB: Some of the accommodations I am about to mention have not been tested personally. So I selected them based on the good feedback from travelers.
Cheap accommodation and hotels in Madeira
Finding cheap accommodation in Madeira is not easy. You have to face the fact that traveling to Madeira is not cheap if you want to stay there for a few days.
The minimum per night is around €50 if you choose to stay in a hostel in Funchal. The further away you get from this city, the more the prices start to go up.
My advice: book your accommodation in Madeira well in advance if you want to find cheap accommodation. Because Madeira is a very touristy island, it is not uncommon to see the best prices fly away quickly.
Mid-range accommodations and hotels in Madeira
With a fairly reasonable budget, it is quite simple to find mid-range accommodations at attractive prices with very positive reviews.
Some of the cheap accommodations I mentioned can be considered mid-range, as only the price differs per se.
However, I am going to give you a list of accommodation that seems to me to be very attractive so that you can make your choice later.
Luxury accommodations and hotels and resorts in Madeira
There are several types of luxury accommodations in Madeira, and everything will depend on what exactly you are looking for.
Perhaps you are looking for a place to relax without being disturbed by other travelers? Or rather a quiet and unique place representative of Madeira?
There is something for everyone, and to do so, I am going to list some fairly varied accommodations that are really worth taking a look at!
My advice: a high price does not necessarily mean that the hotel is luxury. Many of them that cost less (around €100 to €200) are just as good, or even better. Sometimes, all you have to do is search hard to find great gems!
🎯 How do I choose where to stay in Madeira?
In my opinion, there are 3 very important factors to take into account when choosing where to stay in Madeira:
- The length of stay
- Whether or not to rent a car or scooter
- The type of trip (solo, as a couple, with family, or hiking)
Because depending on how long you are going to stay in Madeira, the way to get around and your travel style, you will have to be careful when choosing your accommodation.
The length of stay: decisive for choosing the right accommodation
Travelling 2 days to Madeira is not the same as traveling 6 to 7 days to Madeira.
In 2 days, you won't have time to see everything. So staying around Funchal is the best option in this case.
On the other hand, if you stay for at least 5 days, it's completely different. Because you will have the possibility of changing accommodation along the way to get closer to some more remote places. In fact, that is what I recommend doing.
To do this, I invite you to consult my itinerary of 6 to 7 days in Madeira to help you plan your trip well.
Renting a car or scooter: a crucial factor in choosing a location
Between taking public transport to get around Madeira and renting a car or scooter, choosing where to stay will be completely different.
Indeed, among all the accommodations I have recommended, some will be less accessible than others without a car for example.
Here is my advice if you have to make a choice:
- If you have to travel only by bus and from time to time by taxi, then the best thing is to stay in Funchal. Because you will have access to all the departure points for many tourist activities from the city.
- If you have a car or a scooter, then it will be much easier to find accommodation anywhere in Madeira.
The type of trip: do you prefer to travel as a couple, solo or as a family?
Madeira is especially well known for its magnificent viewpoints, hikes in the levadas and its breathtaking landscapes.
Depending on your type of trip, you may be less interested in some places than others.
But as a general rule, everywhere you go on the island, everyone will find something for themselves in terms of visits.
For the most demanding among you, here are my recommendations for cities where you can stay:
- Solo travel - Funchal, Sao Vicente and Jardim do Mar are for me good places to stay because the cost of accommodation is relatively cheaper than elsewhere. In particular, for people who want to meet other solo travelers, staying in Funchal is still the best option.
- Travel as a couple - Funchal, Sao Vicente, Jardim do Mar and Porto Moniz are ideal for reasonably priced accommodations, while having their own private space.
- Family trip - Funchal, Jardim do Mar and Porto Moniz are the best places especially for children, as you will find beaches and a few parks where you can take them to play.
⚠️ Mistakes to avoid when staying in Madeira
There are mistakes to avoid when it comes to staying in Madeira that you should definitely know before leaving:
- wanting to take an isolated home without having rented a car or scooter
- Underestimate distances
- Book your accommodation much too late during the high seasons
By anticipating these pitfalls, you will be able to choose your hotel calmly while having these precautions in mind, and not find yourself in complicated situations.
Choosing a home that is too isolated without a car
This is certainly a frequent case that can be found among some travelers.
Sometimes, you find accommodation that is very cheap and a bit away from the main city, and you think that this can be done if you walk or if public transport is close to the accommodation.
Except that in Madeira, the terrain is very mountainous, the passage of buses outside Funchal is very slight, and the slopes can be very steep in some places.
If you booked for several days without a car, you may regret it pretty quickly.
Underestimate distances
This is a significant point, especially in Madeira. On the map, the distances seem to be short, but in fact, you will quickly become disenchanted.
A distance of 500m can be done quite well on foot in a few minutes. Especially if you're on a downward slope.
Now imagine going the opposite way. It's immediately less fun when you have to go up the steep slopes.
If you are going to book accommodation in the hills, plan to have a car, scooter, or bus station nearby for added convenience.
Book too late in high season
Finding accommodation in Madeira is not complicated in itself, as you will always find rooms available. But at what price are you prepared to pay for this room?
Indeed, you should know that Madeira is much more touristy than you think.
When I looked at the various accommodation booking platforms, many of them that are of high quality with a very fair price leave very quickly.
Only some rooms are left, but the quality and feedback from travelers are quite poor. Sometimes at fairly expensive rates for what it is.
That's what happened to me the last day before leaving. The day before, I tried to look for a place in Funchal, but there were only accommodations that were not very recommended. I had to look in another town nearby to find a better one.
My advice: plan ahead of other travelers, and book your accommodations in advance!
📍 Map of the best areas to stay in Madeira
🏆 My selection of the best hotels in Madeira
During my 6-day stay in Madeira, I stayed in 3 accommodations, including 2 which are real gems for me and which I recommend:
- Cozy House
- Maktub Guest House
Cozy House: quality accommodation with a very nice host in Funchal
I particularly liked this accommodation for several reasons:
- The host welcomed me with his very beautiful smile and with a real spirit of hospitality. You should also know that he comes from South Africa, and he married a Madeiran woman several years ago.
- It is a small cottage attached to the host's terrace with its own terrace.
- There is a big table on the terrace, a stone faucet, and a place to barbecue. It is a very good opportunity to have a meal in the evening
- The terrace gives a beautiful view of Funchal from the heights.
- The accommodation consists of a small shower, a lounge area with a coffee machine, a TV and a sofa to relax
- On the first floor, you have the bedroom with a window that overlooks the Madeira hills and the sky, as well as an office for people who want to work.
- Towels are provided during your stay
- A bottle of water and some snacks are offered as a welcome pack
NB: Cozy House is quite far from Funchal, but can be reached by bus with line 20 or 11 in about 30 minutes.
Maktub Guest House: a unique and original place to stay in Jardim do Mar
In my opinion, this is the accommodation that I liked the most during my stay in Madeira. I came across by chance while looking on Google Maps to find a guest house type accommodation.
To book at Maktub Guest House, you will need to send a message directly by phone to the host to confirm the availability of the rooms.
There are several reasons why I recommend this magnificent accommodation in Madeira:
- The atmosphere is particularly tropical, and puts us in a relaxing and peaceful atmosphere
- The decor and the setting are very original: there is a lot of vegetation, a lot of wooden decoration and a lot of colors to give this accommodation a very good atmosphere to relax
- The rooms are simplistic, but adequate for a good rest after a long stroll on the island
- The price of accommodation is very fair considering the average price in Madeira. We can't find better in terms of quality/price
- The host has two very cute and adorable little dogs that will accompany you throughout your stay at Maktub Guest House.
- You can have your homemade breakfast in a harmonious setting and at a more than reasonable price (~10€)
NB: On the 3 classic rooms (70 to 80€), you will have shared showers and toilets. You will have to be careful with the shower, as the pipes can sometimes become clogged.
❓ FAQ: Where to stay in Madeira
What is the best place to stay in Madeira?
There are 4 ideal areas depending on your travel style: Funchal (best for a first stay, well served by transport), Porto Moniz (nature and volcanic natural pools), Jardim do Mar (quiet, surfers, accessible only by car) and São Vicente (strategic position in the north-central region to reach the whole island).
Do you need a car to stay in Madeira outside Funchal?
Yes, highly recommended. The terrain is very mountainous, buses are rare outside Funchal and some areas like Jardim do Mar are only accessible by car or scooter. If you are only staying in Funchal, public transport is sufficient.
What is the minimum budget for accommodation in Madeira?
Count at least 48€ per night for a hostel in Funchal (Jaca Hostel Funchal). In other areas, prices start at around €70 per night. For mid-range accommodation, plan between €80 and €150 per night.
When to book accommodation in Madeira?
As early as possible, especially in high season. Madeira is a very tourist destination and quality accommodations at reasonable prices leave quickly. Booking several weeks in advance allows you to access the best rates.
What is the best cheap hotel in Madeira?
In Funchal, the Jaca Hostel Funchal offers nights from €48. In Jardim do Mar, Maktub Guest House is a great option from €70 per night with a unique tropical ambiance and a homemade breakfast available at ~€10.
