Where to stay in Madeira: the short answer
For a first visit, Funchal is the easiest base and the best town to stay in Madeira for most travellers. It has the most hotels, the Aerobus from the airport and the cable car to Monte, and many tours collect guests there. If you want quiet or sit on the coast far from the capital, the southwest or the north fit better, but you then need a car or plenty of patience with buses.
This page is about areas, not hotels. Use the area comparison below, then check a booking site for properties and room prices on the dates you travel. This is an independent guide, not the official tourism website.
Best area to stay in Madeira: six bases compared
Six bases, what each is good for and the catch.
| Area | Coast | Good for | The catch |
|---|---|---|---|
| Funchal | South | First visit, no car, restaurants, cable car, tours | Busy and hilly, and hotels in the hotel zone are not all next to the old town |
| Calheta | Southwest | Sun, marina, whale-watching boats | Far from the north and the eastern trails |
| Ponta do Sol | Southwest | A quieter south coast base | Check services on the spot |
| Caniço | East of Funchal | Close to the airport | Check services on the spot |
| Porto Moniz | Northwest tip | Natural pools, the west coast | About 60 km from Funchal, wetter and windier |
| Santana | North | Thatched houses, trails towards Achada do Teixeira | Wetter, far from the south coast sun |
Madeira tours and activities
Guided levada walks, sunrise trips to Pico do Arieiro, jeep tours and whale-watching boats, with live prices and availability.
Places to stay in Funchal, Madeira: the default base
Most visitors stay here, and for good reasons.
The hotel zone
Many hotels line the Estrada Monumental and the Avenida do Infante as far as Praia Formosa. The Aerobus serves this zone directly, and according to a secondary source 113 hotels are assigned to its stops. The Aerobus costs €6.70 for adults in 2026, cash on board.
The old town and cable car
The old town (Zona Velha) and the lower cable car station are in the centre. A return ticket to Monte is €22. The Mercado dos Lavradores is open Monday to Friday 7:00 to 19:00 and Saturday 7:00 to 14:00.
Funchal →Weather
The south coast is usually warmer and drier than the north and the mountains. Funchal averages 20.0 °C over the year and about 574 mm of rain, with a very dry summer.
Weather and best time →Where to stay in Funchal: hotel zone or old town
The best place to stay in Funchal, Madeira, depends on what you want next to your door. The hotel zone along the Estrada Monumental has the Aerobus stops, while the old town puts you close to the lower cable car station. Not all hotels in the hotel zone are next to the old town, so check the map for your property.
Other places to stay in Madeira: southwest, east and Caniço
Choose these if you want less town.
Calheta
Calheta lies on the southwest coast and has the second-largest marina on the island. The area is sunny, and whale- and dolphin-watching boats depart from here. It suits a beach, boat and viewpoint trip, but the trailheads of the northeast are a long way off.
Whale watching →Ponta do Sol
Ponta do Sol is on the southwest coast, between Funchal and Calheta. Treat it as a quieter alternative and check the hotels and services there yourself.
Caniço
Caniço lies east of Funchal, near the airport, which is in Santa Cruz about 18 km from the centre of Funchal. Check the services there on the spot. It can suit an early flight, but check how often buses run before you rely on them.
Madeira airport →Porto Moniz and Santana in the north
Greener, wetter and more remote.
Porto Moniz
Porto Moniz sits on the northwest tip and has hotels nearby. The municipal pools cost €3, and the Cachalote pools at the edge of town are free but unguarded. Sources give about 60 km and 1.5 to 2 hours by car from Funchal. Expect wind and more rain than in the south.
Porto Moniz →Santana
Santana is on the north coast, known for its triangular thatched houses. It is a starting point for Achada do Teixeira and the PR 1.2 trail, which is one way out of the Pico Ruivo ridge walk. If you finish there, arrange a taxi or transfer back.
Santana →
A two-base trip
On a stay of a week or more, you can split it: a few nights in Funchal for the town and Monte, then a few in the north or west for trails and pools. It cuts the driving, but you need a car for the second part.
How to decide
Four questions.
Do you have a car?
Without one, stay in Funchal. Public buses run, but several trailheads have almost no public transport.
Car rental and driving →What is the main activity?
Walks in the mountains start from the centre or the north. Boats start from Funchal and Calheta. Pools and cliffs are in the west.
When do you travel?
Summer is very dry, and winter is milder and wetter. The north and the mountains see the most rain and fog.
How long do you stay?
For three or four nights, one base is enough. For a week or more, split your stay.
Plan the rest of your trip
Useful pages before you decide.
Where to stay in Madeira: frequently asked questions
Is Funchal the best place to stay in Madeira?
For a first visit and without a car, yes. It has the most hotels, the Aerobus from the airport and the cable car to Monte.
Is it better to stay in the south or the north?
The south coast is usually warmer and drier. The north and the mountains are windier, wetter and greener. Many visitors stay in the south and take day trips north.
Can I stay in Porto Moniz without a car?
It is possible but slow. Porto Moniz is about 60 km from Funchal, and the buses take much longer than the drive. A car makes the area far easier.
Which area is closest to the airport?
The airport is in Santa Cruz, about 18 km east of the centre of Funchal, and the drive takes around 20 to 25 minutes. Caniço lies near it; check the services there on the spot.
Do you list hotel prices?
No. Check a booking site for hotel prices on your dates.