We visited Madeira in 2014, 2021 and 2023 and slept in the same place every time: the Pestana Casino Park in Funchal, for 3 to 5 nights each trip. The other areas of the island we know from day visits, never from a night’s sleep, and we say so hotel by hotel.
So this guide draws a simple line. About Funchal we speak from experience. Santana and Machico are places we visited and think are good alternatives if you want something different, and the hotels we suggest there were chosen for location and type of stay, not because we slept in them.
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In this article
Best Areas to Stay in Madeira
Madeira is small on the map and slow on the road, because of the many curves and climbs. The useful question is not which area is best, but how long you want to spend behind the wheel and what kind of evening you want.
- Funchal, hotel zone
- Funchal, Old Town
- Machico
- Santana
Funchal: The Most Practical Base for Most People
Who it suits: first-time visitors, anyone who wants restaurants and some life in the evening, and anyone happy to drive to the other areas. It also suits people who prefer to leave the car parked for a few days, because the center is easy on foot.
Who it doesn’t suit: anyone who wants to wake up in the middle of nature or far from a city.
This is where we stayed on all three trips. We always chose the Pestana Casino Park for the location, the service and the view over Funchal, and the detail we remember most is the breakfast room, with its view of the sea and the bay of Funchal. It is where we would stay again.
Funchal is a good base because the day can end in the center, with more choice for late afternoon and night than in the other areas. And from there, always staying in the city, we did what is in our guide to what to do in Madeira: the Mercado dos Lavradores, the levadas, Santana, Porto Moniz and Ponta de São Lourenço.
Funchal has two areas people often talk about separately. The hotel zone, where the Pestana is, is the one we know. The Old Town, by the harbor, we know from walks: we explored the traditional shops, went through the Mercado dos Lavradores, where we remember the tropical fruit and the flowers, and rode the cable car. Nights there are a blank for us, since we didn’t sleep there.
Best Hotels in Funchal
– Apartments: OurMadeira – Fort of Old Town Apartments, apartments in the Old Town. Our suggestion for the area and for being apartments, useful for longer stays. We never slept there. – Luxury, 5 stars: Pestana Casino Park Hotel & Casino, the hotel where we stayed on all three trips. It is in the hotel zone and has the breakfast-room view we mentioned. – Luxury, 5 stars: Barceló Funchal Oldtown, in the historic center. We never slept there; it is on the list for the type of hotel and for being in the Old Town.
OurMadeira – Fort of Old Town Apartments
Pestana Casino Park Hotel & Casino
Barceló Funchal Oldtown
Santana: The North and the Thatched Houses
Who it suits: anyone who wants nature and a greener Madeira, and doesn’t mind being far from Funchal.
Who it doesn’t suit: anyone who wants restaurants and bars at the door, or who drives little.
The thatched houses of Santana are one of the things on our list of what to do in Madeira, but we didn’t sleep there. If you stay in the north, expect more driving than on a normal day in Funchal.
Best Hotels in Santana
– Rural stay: Casas de Campo do Pomar B&B. We never slept there; we chose it for the rural type of stay in Santana. – Mid-range, 4 stars: Hotel O Colmo. We never slept there either; our suggestion is for the location in Santana. – Mid-range, 4 stars: Hotel Quinta do Furão. We never slept there; it is here for the type of hotel and the location.
Casas de Campo do Pomar B&B
Hotel O Colmo
Hotel Quinta do Furão
Machico: The East Coast Near the Airport
Who it suits: anyone who wants a first or last night near the airport, with a beach at the door, or a calmer base on the east coast.
Who it doesn’t suit: anyone who needs to be close to the restaurants and nightlife of Funchal. We never slept in Machico, so we don’t know how long the drive from Funchal takes or what the nights are like.
When we land, the first thing we do is go to Machico, near the airport, to eat queijadas at Pastelaria O Galã. The town and the beach in Machico we only walked around, and never slept there. From the Booking pages, the hotels here are close to the beach.
Best Hotels in Machico
– Guesthouse: Residencial Familia. We never slept there; our suggestion is for the location in Machico and for being a simple guesthouse. – Budget, 3 stars: White Waters Hotel. We never slept there either; our suggestion is for the location, next to the beach. – Mid-range, 4 stars: Baía Madeira Hotel. We never slept there; our suggestion is for the type of hotel, facing Machico beach.
Residencial Familia
White Waters Hotel
Baía Madeira Hotel
On November 7 and 8, 2026, we confirmed that all nine hotels are listed on Booking.com, and the details come from their pages. The category is the star class Booking shows; properties without stars appear by type. The price is the lowest rate Booking showed for two adults from October 12 to 14, 2027, per night, taxes included; some include breakfast, and promotions and cancellation rules differ. Hotel O Colmo was sold out on those dates and OurMadeira asks for 3 nights or more, so neither has a price. In Machico, Residencial Familia appears by type, not by stars. Prices change every day, so check your own dates.
Tips for Choosing Where to Stay in Madeira
– Decide on the car first. For us renting a car is essential to explore the island, and it weighs more on the choice of area than the hotel does. – Funchal as a base, if it’s your first time. It gives you more choice in the evening and leaves every other area a drive away. – Machico, if you fly out early or land late. It is the area closest to the airport, as the map shows, and works as a first or last night. – Porto Santo is a different trip. It is about 2h30m by boat from Funchal, with Porto Santo Line, and has its own guide: Porto Santo island. – Check your dates. The card prices are from October 2027 and change every day; compare the nights you want on Booking.com. – Sort out the rest before you go: our guide to the best eSIM for travel and the article on whether you need travel insurance cover the practical side.
FAQs: Where to Stay in Madeira
What is the best area to stay in Madeira?
For a first visit, Funchal. It is where we slept on all three trips and it has more choice in the evening and at night. The other areas are worth it if you already know the island or want quiet.
Do I need a car if I stay in Funchal?
Not for the center. To explore the island, for us renting a car is essential, because it gives access to remote places and flexibility. If you would rather not drive, Funchal is the area where that is most workable, because the center is walkable.
How many nights should I stay in Madeira?
On our trips we stayed between 3 and 5 nights each time. For Funchal and some of the excursions in our what-to-do guide, that range was enough for us, but with more days you would have a calmer pace.
Where to stay in Madeira for nightlife?
In Funchal. In our experience it is the area with the most choice for late afternoon and night. In rural areas like Santana, don’t expect bars at the door.
Are there cheap places to stay in Madeira?
There are simple options in every area. On the cards above, Casas de Campo do Pomar showed from about 110 € a night and Quinta do Furão from about 255 €, at Booking’s lowest rate for October 12 to 14, 2027. The prices aren’t directly comparable with other dates, so compare yours on Booking.
Is it worth staying outside Funchal?
It depends on what you want. Santana gives you quiet and nature, and Machico is near the airport and the beach, but in both you are far from Funchal and depend on a car. We never slept outside Funchal, so we can’t say what the routine there is like.
Summary: Our Pick
For a first visit, we would sleep in Funchal again, at the Pestana Casino Park, and do the rest of the island by car. Santana is for anyone who wants one or two nights of nature, and when we sleep there we will update this guide.
