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The Cliff Bay Resort, Funchal

Where to stay guide

Where to stay in Madeira: the best areas and hotels

Updated 1 October 2026 · 4 areas · 15 hotels picked

Pictured: The Cliff Bay Resort

Madeira rises out of the Atlantic like a green cathedral: sheer cliffs, terraced hillsides, laurel forests and levada trails that cling to the mountainsides. It is called the island of eternal spring for good reason, with mild weather all year and flowers everywhere you look.

It is not a sandy-beach island, though: most swimming is from lidos, rocks and seawater pools. For sand, you hop across to Porto Santo, its small neighbour with a golden beach. Most visitors base themselves in or near Funchal, the capital, on the sunny south coast.

The short answer

Madeira areas at a glance

FunchalCouples, Culture, FoodThe capital: clifftop hotels, an old town and lively restaurants.Hotels: 127
Caniço de BaixoQuiet, Couples, DivingClifftop hotels beside a marine nature reserve, near Funchal.Hotels: 15
Santa CruzShort transfer, Families, ValueA small seaside town a few minutes from the airport.Hotels: 12
Porto SantoBeach, Families, QuietMadeira’s little sister island, with a 9 km golden beach.Hotels: 13

Funchal

The Cliff Bay Resort, Funchal
Terrace Mar Suite Hotel, Funchal
PESTANA CARLTON MADEIRA PREMIUM OCEAN RESORT, Funchal
Pictured: The Cliff Bay Resort · Terrace Mar Suite Hotel · PESTANA CARLTON MADEIRA PREMIUM OCEAN RESORT
  • Couples
  • Culture
  • Food
The capital: clifftop hotels, an old town and lively restaurants.

Funchal climbs steeply up from the harbour in a tumble of white houses and red roofs. Down below there's the cobbled old town, with its painted doors and restaurants, the colourful Mercado dos Lavradores and a cable car that swings up to the hillside gardens of Monte.

Most hotels sit along the coast to the west of the centre, many perched on cliffs with seawater pools and lidos for swimming. It is the most convenient base for exploring the island, and the airport is about 20 to 25 minutes away.

Hotels to look at in Funchal

Caniço de Baixo

Royal Orchid, Canico
Hotel Roca Mar, Canico
Cais da Oliveira, Canico
Pictured: Royal Orchid · Hotel Roca Mar · Cais da Oliveira
  • Quiet
  • Couples
  • Diving
Clifftop hotels beside a marine nature reserve, near Funchal.

Caniço de Baixo is a quiet seaside village east of Funchal, where hotels are perched on Atlantic cliffs with lifts or paths down to the sea. Next to it lies the Garajau marine nature reserve, one of the best places on the island for snorkelling and diving.

Funchal is about 20 minutes away and the airport around 10 minutes.

Hotels to look at in Canico

Santa Cruz

Albatroz Beach & Yacht Club, Santa Cruz, Madeira
Vila Gale Santa Cruz, Santa Cruz, Madeira
Santa Cruz Village Hotel, Santa Cruz, Madeira
Pictured: Albatroz Beach & Yacht Club · Vila Gale Santa Cruz · Santa Cruz Village Hotel
  • Short transfer
  • Families
  • Value
A small seaside town a few minutes from the airport.

Santa Cruz is a small, traditional town on the east coast, with a seafront promenade, a pebble beach, a water park nearby and a historic quarter. It is just a few minutes from the airport and about 15 minutes from Funchal.

Hotels to look at in Santa Cruz, Madeira

Porto Santo

Pestana Porto Santo All Inclusive Premium Beach, Porto Santo
The Navigator Colombus All Inclusive, Porto Santo
Porto Santo Hotel & Spa, Porto Santo
Pictured: Pestana Porto Santo All Inclusive Premium Beach · The Navigator Colombus All Inclusive · Porto Santo Hotel & Spa
  • Beach
  • Families
  • Quiet
Madeira’s little sister island, with a 9 km golden beach.

Porto Santo is everything Madeira isn't: low, dry and fringed by a 9 km beach of soft golden sand with calm, clear water. It is a short flight or a couple of hours by ferry from Funchal, and the pace is wonderfully slow.

It is ideal for families and anyone who wants a proper beach holiday, or a few days of sand after a week of walking on Madeira.

Hotels to look at in Porto Santo

Beaches in Madeira

Madeira itself has few sandy beaches: swimming is mostly from lidos, seawater pools and rocky shores, and many hotels have their own sea access. For a proper sandy beach, go to Porto Santo.

Getting around

The airport is on the east coast, about 20 to 25 minutes from Funchal and a few minutes from Santa Cruz and Caniço. Roads are steep and winding: tours and taxis are often easier than driving yourself.

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Questions about where to stay in Madeira

What is the best area to stay in Madeira?
Funchal is the best base for most visitors, with clifftop hotels, an old town full of restaurants and easy access to the rest of the island. Caniço de Baixo is a quieter alternative nearby.
Does Madeira have sandy beaches?
Very few. Most swimming is from lidos, seawater pools and rocky shores. Neighbouring Porto Santo has a 9 km golden sandy beach.
Where should families stay in Madeira?
Funchal has family hotels with pools and lidos. For a beach holiday, Porto Santo, with its long sandy beach and calm water, is ideal for children.