Where to Stay in Funchal 🇵🇹: 5 Best Areas for Your Madeira Adventure

Updated on October 16, 2024
by Alex Miller

Welcome to Funchal, the capital of Madeira, where vibrant culture meets stunning landscapes! This city is a mosaic of diverse neighborhoods, each offering its own unique charm. If you’re a culture enthusiast, Sé (City Center) is your playground with its rich history. Families will love the tranquil vibe of São Martinho, while Lido is perfect for beach lovers and shoppers. Night owls should head to Santa Maria Maior for lively nightlife, and São Pedro offers budget-friendly options. For nature lovers, Monte provides breathtaking views and adventure.

Our Pick of the Best Hotels in Funchal

Quick Guide to the Best Places to Stay in Funchal

  • 👀 For the First Time: Sé (City Center)
  • 👪 For Families: São Martinho
  • 🛍️ For Shopping: Lido
  • 🕊  For Nightlife: Santa Maria Maior
  • 🎭 For Culture: Old Town (Zona Velha)
  • 💰 For Budget Travelers: São Pedro
  • 🏖️ For Beach Lovers: Lido
  • 🍃 For Nature Lovers & Adventures: Monte

1. Sé (City Center): Perfect for Culture Enthusiasts and Shoppers 🏙️

🌆 Cultural Hub: Sé, the beating heart of Funchal, is a cultural paradise for enthusiasts and shoppers alike. This area, located in the center of Funchal, offers a rich tapestry of history and modernity. The beautiful Sé Cathedral, dating back to the 15th century, is a must-visit for its stunning architecture and cultural heritage. Just a stroll away, the bustling Mercado dos Lavradores entices with vibrant colors and local delicacies. It’s a great place to connect with locals and tourists alike.

🛍️ Must-See Attractions:

  • Sé Cathedral: This iconic landmark offers stunning views of the city from its tower. It’s a great spot for those interested in Funchal’s cultural heritage.
  • Mercado dos Lavradores: A local favorite, this farmers’ market is a sensory delight with its tropical fruits and unique souvenirs.
  • Municipal Garden: Located in the center, this serene spot is perfect for a quiet stroll amidst exotic flora. It’s a hidden gem for nature lovers.

🚉 Convenient Location: Getting around Sé is a breeze with its direct access to public transportation. The area is well-connected to other parts of Funchal, including the scenic Lido area and the historic Zona Velha. Whether you’re heading to Monte’s botanical gardens or exploring the coastline, transportation options are plentiful.

🍽️ Shopping & Dining:

  • Local Eateries: Dive into Portuguese cuisine at cozy spots offering local favorites like seafood delicacies. The aroma of freshly baked bread fills the air, making it a delightful experience.
  • Rua Shopping: This vibrant street offers a mix of traditional and modern shops. It’s a great choice for picking up unique souvenirs and gifts.
  • Café Culture: Enjoy a leisurely afternoon at a café, sipping on rich coffee while watching the world go by. It’s a quintessential Funchal experience.

💡 Insider Tips: For a quieter experience, visit the Sé Cathedral early in the morning to avoid crowds and enjoy the stunning views of the city in peace. Head to the Mercado dos Lavradores during weekdays when it’s less crowded. For a scenic escape, take a cable car ride to Monte and explore the Monte Palace Tropical Garden. It’s a great choice for those seeking tranquility away from the bustle. Don’t forget to try the local wine, Funchal is famous for it!

Where to Stay in Sé?

Best Luxury Hotels

  • Reid's Palace, A Belmond Hotel – This historic luxury hotel is surrounded by lush gardens, offering breathtaking views of the Atlantic Ocean. The elegant rooms and top-notch amenities make it a perfect choice for a lavish stay.
  • The Vine Hotel – Known for its modern design, this hotel features a rooftop swimming-pool and a spa. It is centrally located, making it easy to explore Funchal’s vibrant culture.
  • Quinta da Casa Branca – Set in beautiful gardens, Quinta da Casa Branca offers a tranquil retreat with stylish accommodations. The on-site restaurant serves exquisite Mediterranean cuisine, enhancing your luxury experience.

🏨 Best Mid-Range Hotels

  • Sé Boutique Hotel – Located in the heart of Funchal, this hotel combines modern amenities with a charming atmosphere. The rooftop bar offers panoramic views, making it a great spot to unwind after a day of sightseeing.
  • Pestana CR7 Funchal – Pestana CR7 Funchal, inspired by Cristiano Ronaldo, features a contemporary design and an outdoor gym. It’s a fantastic choice for sports enthusiasts and those looking to stay in a vibrant area.
  • Hotel Madeira – This welcoming hotel offers comfortable accommodations and is conveniently located near the center. Guests can enjoy a lovely terrace and charming views.

🛏️ Best Budget Hotels

  • Hotel Monte Carlo – This budget-friendly hotel is situated close to the center of the city. The cozy rooms and friendly staff make it a solid choice for budget travelers.
  • Residencial Pina – Offering affordable accommodations in a central location, Residencial Pina is perfect for travelers looking to explore Funchal without breaking the bank. It features simple yet comfortable rooms.

2. São Martinho: Ideal for Relaxation Seekers and Families 🌳

🏡 Charming Retreat: São Martinho is the best place to stay if you’re after a peaceful, family-friendly vibe. This area is known for its residential charm and idyllic surroundings, offering a perfect escape from the hustle and bustle of Funchal’s city center. The narrow streets and colourful houses create a welcoming atmosphere, making it an ideal spot for relaxation seekers.

🛍️ Must-Do Things:

  • Forum Madeira: One of the largest shopping malls around the area, it offers several shops and dining options. It’s a great spot to enjoy a leisurely day with family.
  • Praia Formosa: This beach is worth visiting for its stunning sea views and clear sea water. It’s a local favorite for sunbathing and swimming.
  • Camara de Lobos: A charming fishing village nearby, known for its vibrant atmosphere.

🚍 Location: São Martinho is well-connected by public transport, making it easy to explore Funchal and the beachfront. Buses frequently run to the Old Town and other key attractions, including the Cathedral of Funchal and the Lady of Monte. Whether you’re heading to Santo or Caniço, getting around is a breeze.

🍽️ Shopping & Dining:

  • Local Cafés: Enjoy a cup of Portuguese coffee in a cozy café, where the aroma of freshly baked pastries fills the air. It’s a delightful way to start your day.
  • Traditional Restaurants: Savor local food in family-run eateries that offer authentic Portuguese flavors. The seafood here is a must-try.
  • Boutique Shops: Explore unique stores offering handmade crafts and souvenirs. It’s a perfect choice for finding one-of-a-kind gifts.

💡 Insider Tips: For a quieter beach experience, visit Praia Formosa early in the morning when it’s less crowded. If you’re interested in local culture, take a short trip to Curral das Freiras for breathtaking views and a taste of traditional life. For a unique adventure, hop on a teleférico (cable car) for stunning views of Funchal and the surrounding areas. Don’t forget to try the local wicker basket crafts, a specialty of the region!

Where to Stay in São Martinho?

Best Luxury Hotels

  • Les Suites at The Cliff Bay – This luxurious hotel offers panoramic views of the Atlantic and features spacious suites with modern amenities. The heated outdoor swimming-pool and fine dining options make it a perfect retreat for those seeking elegance and comfort.
  • Savoy Palace – Known for its contemporary design and exceptional service, Savoy Palace boasts multiple dining options and a beautiful infinity swimming-pool overlooking the ocean. The spa facilities provide a relaxing escape after a day of exploring Funchal.
  • Pestana Vila Lido Madeira Ocean Hotel – Set within lush gardens, this hotel features an outdoor swimming-pool and spacious studios with ocean views. Its proximity to the beach makes it a perfect choice for a luxurious stay.

🏨 Best Mid-Range Hotels

  • Hotel Porto Mare – This welcoming hotel is part of the Vila Porto Mare resort and offers beautiful gardens, and a variety of dining options. It’s conveniently located near the beach.
  • Dorisol Mimosa Studio Hotel – Located in a quiet area, this hotel features comfortable studios with kitchenettes and a lovely outdoor pool. The friendly staff and relaxed atmosphere make it an excellent choice for a mid-range stay.
  • Estrelicia Hotel – This charming hotel offers a cozy environment with modern amenities and a restaurant serving local cuisine. It’s a great base for exploring the city and enjoying the local culture.

🛏️ Best Budget Hotels

  • Lido Casa Branca – This budget-friendly 1-bedroom apartment offers access to a balcony, free private parking, and free WiFi. The property is non-smoking and is set less than 1 km from Gorgulho – Gavinas Beach.
  • Magnolia Apartment – This spacious apartment has 3 bedrooms, a flat-screen TV with satellite channels, and a fully equipped kitchen. It features accommodation with free WiFi and free private parking, making it perfect for budget-conscious travelers.

3. Lido: Best for Beach Lovers and Nightlife Aficionados 🌊

🌊 Modern Vibes: Lido is a vibrant, modern resort area in Funchal, perfect for beach lovers and nightlife aficionados. It’s where Madeira’s coastline meets vibrant activity, offering a blend of relaxation and excitement. The Lido Promenade is a scenic walkway that stretches along the sea, providing stunning views and a refreshing sea breeze. Nearby, the seaside swimming pools offer a great spot to soak up the sun and enjoy the crystal-clear sea water.

🏖️ Must-Do Things:

  • Lido Promenade: An idillic path along the sea, ideal for a leisurely stroll. It’s a great place to watch the sunset and feel the ocean breeze.
  • Seaside Swimming Pools: These pools are a local favorite for their clean water and stunning views. They’re perfect for a refreshing dip.
  • Casino: For those feeling lucky, the local casino offers a lively atmosphere and entertainment. It’s a fun way to spend an evening.

🚍 Getting Around: Transportation in Lido is convenient, with convenient access to buses and taxis connecting you to other parts of Funchal. Whether you’re heading to the historic Old Town or exploring the cliffs of Cabo Girão, getting around is a breeze.

🍽️ Shopping & Dining:

  • Seafood Restaurants: Indulge in Madeira’s seafood delicacies at waterfront restaurants. The taste of fresh fish and local spices is unforgettable.
  • Souvenir Shops: Pick up unique gifts and mementos from local shops. They offer a variety of items that capture the essence of Madeira.
Madeira, Funchal: São Lido
Madeira, Funchal: São Lido
Madeira, Funchal: São Lido

💡 Insider Tips: If you’re planning to explore beyond Lido, consider using the local bus system for a cost-effective way to travel. The seaside swimming pools are a hidden gem, offering a peaceful retreat with fewer crowds. Don’t miss the fireworks display during festivals; it’s a spectacular sight over the harbor. For a unique experience, take a day trip to the charming village of Camara de Lobos or the breathtaking valley of Curral das Freiras.

Where to Stay in Lido?

Best Luxury Hotels

  • The Cliff Bay – This luxurious hotel offers breathtaking views of the Atlantic Ocean and features beautifully landscaped gardens. With direct access to the sea, multiple dining options, and a world-class spa, it’s the perfect spot for a relaxing getaway.
  • Enotel Lido - All Inclusive – Enotel Lido – All Inclusive provides a modern experience with spacious rooms and a variety of dining options. Guests can enjoy both indoor and outdoor swimming-pools, a spa, and convenient access to the oceanfront promenade.
  • Melia Madeira Mare – Known for its contemporary design, Melia Madeira Mare boasts an infinity swimming-pool with stunning ocean views. The on-site restaurants serve a mix of local and international cuisine, making it a delightful culinary experience.

🏨 Best Mid-Range Hotels

  • Hotel Alto Lido – Recently renovated, this hotel features modern rooms with sea views and offers both indoor and outdoor heated pools.
  • Pestana Promenade Ocean Resort Hotel – This hotel is set along the oceanfront and offers comfortable accommodations with beautiful views. Guests can enjoy a variety of facilities, including a spa and swimming-pools.
  • Vidamar Resorts Madeira – This modern resort features several dining options, along with direct access to the beach. The spacious rooms provide a relaxing atmosphere, perfect for unwinding after a day of exploring.

🛏️ Best Budget Hotels

  • Cliff View Apartment – Each unit in this apartment comes with a balcony offering sea views, a cable TV, a well-fitted kitchen, and a private bathroom. It’s an excellent option for those looking for a home-like feel while staying in Funchal.

4. Santa Maria Maior: Great for History Buffs and Art Admirers 🎨

🎨 Historic Charm: Santa Maria Maior is a dream for history buffs and art admirers. This historic neighborhood in Funchal is home to narrow streets that echo stories from when the city was first discovered. Walking here feels like stepping back in time, with every corner offering a glimpse into the past.

🏰 Must-See Attractions:

  • Forte São Tiago: This colorful fortress offers breathtaking views of the sea level and waterfront. It’s a great spot to soak in the history while enjoying the scenic surroundings.
  • Museum of Contemporary Art: Located within the fortress, this museum showcases intriguing Portuguese art. It’s a must-visit for anyone keen on the local art scene.
  • Santa Cruz Church: This quaint church is a hidden gem, perfect for those who appreciate religious architecture and tranquility.

🚶‍♂️ Easy Access: Navigating Santa Maria Maior is a breeze despite its steep hills. The area is well-connected, making it easy to explore other parts of Funchal. Whether you’re heading to Monte or strolling along the levada trails, getting around is simple.

🍽️ Shopping & Dining:

  • Traditional Taverns: Dive into authentic Madeiran cuisine at cozy taverns offering local favorites. The aroma of grilled fish and spices fills the air, making it a delightful experience.
  • Artisan Shops: Explore quaint shops selling handmade crafts and souvenirs. It’s a great place to find unique gifts to take home.
  • Rooftop Cafes: Enjoy a coffee at a rooftop cafe with stunning views of the harbor. It’s a perfect spot to relax and watch the world go by.

💡 Insider Tips: If you’re a fan of local art, the Museum of Contemporary Art offers several exhibitions that are worth visiting. For a unique dining experience, try a traditional Madeiran dish at a local tavern—it’s a type of culinary journey you won’t forget. To save time, use the cable car to reach Monte and explore the beautiful Monte Palace Tropical Garden. You’re lucky if you catch a local festival, as the vibrant atmosphere is truly unforgettable!

Where to Stay in Santa Maria Maior?

Best Luxury Hotels

  • Quinta Mirabela – This 19th-century manor house turned luxury hotel offers panoramic views of Funchal and the surrounding mountains. Set in beautiful gardens, it features an outdoor pool, spa, and elegant rooms with balconies. The on-site restaurant serves delicious local cuisine.
  • Castanheiro Boutique Hotel – This boutique hotel combines modern amenities with historic charm. Guests can enjoy a rooftop pool, spa, and panoramic views of the city from the terrace. The spacious rooms are tastefully decorated and offer a comfortable stay.
  • Estalagem Jardins do Lago – Surrounded by lush botanical gardens, this 18th-century mansion offers a peaceful retreat in Funchal. The elegant rooms feature balconies overlooking the gardens, and guests can relax by the outdoor pool or indulge in treatments at the spa. A shuttle service is available to the center of the city.

🏨 Best Mid-Range Hotels

  • Hotel Catedral – This sophisticated hotel is just a 3-minute walk from the Cathedral of Funchal, making it an ideal base for exploring the city’s historic sites. The modern rooms are comfortable and well-equipped, and guests can enjoy a buffet breakfast each morning.
  • Rochinha Studio Apartment – Featuring a garden, sea and mountain views, this cozy guest house also comes with free WiFi. Outdoor furniture is available for guests to relax or dine outside.

🛏️ Best Budget Hotels

  • Santa Maria Hostel – Located within a traditional and historical building in Funchal old town, this budget hostel is a boutique hostel featuring a vintage-style décor. The hostel offers a restaurant with an excellent variety of both international and local cuisine.

5. São Pedro: Suited for Tranquil Retreats and Nature Lovers 🌿

🌿 Quiet Retreat: São Pedro is a peaceful haven, perfect for those seeking tranquility. This neighborhood offers a quiet, local atmosphere with charming streets and traditional Portuguese houses. It’s ideal for the type of person who enjoys a slower pace and a more authentic experience.

🏞️ Must-Do Things:

  • Quinta Jardins do Lago: Explore this botanical garden for a serene escape. It offers panoramic views and a chance to connect with nature.
  • Monte Palace Tropical Garden: Just a short ride away, this garden is a tropical paradise with exotic plants and idyllic vistas.
  • Santa Catarina Park: A great place to relax, this park offers breathtaking views of Funchal and the waterfront.

🚍 Easy Transport: São Pedro is well-connected to the rest of Funchal, making it easy to explore the city. With convenient transport links, you can easily reach nearby attractions like the bustling Lido area or the historic Zona Velha.

🍴 Shopping & Dining:

  • Local Eateries: Savor the flavors of traditional Portuguese dishes at charming, family-run restaurants. The aroma of simmering stews and freshly baked bread fills the air, creating a warm and inviting atmosphere.
  • Artisan Shops: Explore the quaint shops showcasing the work of local artisans. From handcrafted pottery to intricate embroidery, you’ll find unique treasures to bring a piece of Madeira back home.
  • Café Scene: Embrace the laid-back café culture by sipping on a perfectly brewed coffee at a cozy spot. It’s the ideal place to relax, engage in friendly conversations with locals, and observe the daily life unfolding around you.
Madeira, Funchal: São Pedro
Madeira, Funchal: São Pedro
Madeira, Funchal: São Pedro

💡 Insider Tips: If you’re keen on local flavors, try dining at smaller eateries where locals frequent—it’s a money saver and offers a more authentic experience. For stunning views, head to the nearby Monte Palace Tropical Garden via cable car. It’s a hidden gem that provides breathtaking vistas without the crowds.

Where to Stay in São Pedro?

Best Luxury Hotels

  • Quinta da Casa Branca – Situated in a historic 18th-century mansion surrounded by botanical gardens, Quinta Jardins do Lago offers beautiful views of Funchal and the Atlantic Ocean. The rooms are spacious and well-appointed, and the pool area is perfect for relaxing.
  • Castanheiro Boutique Hotel – Located in the heart of Funchal, this hotel offers modern, stylish rooms and excellent amenities including a rooftop pool, spa, and fitness center. The staff is friendly, and the breakfast is delicious.

🏨 Best Mid-Range Hotels

  • ASPA - São Paulo Studios – This aparthotel offers accommodation with a terrace and concierge service. Each unit comes with a flat-screen TV, private bathroom, and a fully equipped kitchen, making it an excellent option for longer stays.
  • Alojamento Local Trigal – The apartment provides city views, a terrace, and free WiFi throughout the property. Every unit includes a wardrobe, and some feature a fully equipped kitchenette, perfect for those looking to self-cater.
  • Orquidea – While a bit older and worn, Orquidea offers great value for money. The location is ideal, the staff is friendly and helpful, and the breakfast is decent with beautiful views of the city and ocean.

🛏️ Best Budget Hotels

  • CBA Suites Madeira – Offering a garden and pool view, CBA Suites Madeira is situated just a short distance from the beach. This property features family rooms and a year-round outdoor pool, making it ideal for families and budget travelers alike.

Essential Tips for Picking Your Perfect Stay

💰 Budget Matters: When planning your stay in Funchal, consider your budget first. Portugal offers a range of accommodations, from budget-friendly hostels to luxurious resorts. I suggest setting a clear budget to narrow down your options.

🏛️ Atmosphere Vibes: Think about the vibe you want. Do you crave the historic charm of old town streets or the modern buzz of a lively area? Funchal has it all, whether you’re after a quiet retreat or a vibrant nightlife.

🏖️ Proximity Perks: Staying close to attractions and beaches can save you time. I recommend choosing a place that allows easy access to Funchal’s stunning beachfront and must-visit spots.

🚍 Transport Tips: Consider transportation options. If you plan to explore beyond Funchal, check for nearby public transport or car rental services. It’s a great way to connect with the island’s beauty.

📆 Stay Duration: Lastly, think about how long you’ll be in Funchal. A longer stay might mean exploring multiple neighborhoods, while a short trip calls for a central location.

FAQs About  Visiting Funchal

What Is the Old Town Like in Funchal?

The Old Town, or Zona Velha, is a picturesque area with narrow streets and colorful murals. It’s a cultural hotspot, perfect for exploring local art and history.

Is Monte a Good Area for Tourists?

Monte is a great place for tourists who enjoy nature and breathtaking views. It’s famous for its botanical gardens and the thrilling wicker basket rides.

Is Camara de Lobos Worth Visiting?

Yes, Camara de Lobos is a charming fishing village near Funchal. It’s known for its picturesque  harbor and is a favorite spot for tasting local wines.

Are There Any Unique Transportation Experiences in Funchal?

Yes, the cable car ride from Funchal to Monte offers stunning views of the city and coastline. It’s a memorable way to see the island’s natural beauty.