If you’re into big, luscious mountains and beautiful beaches; you need to place Madeira firmly on your bucket list.
Madeira is a wild, unique, and stunningly beautiful destination in Portugal. It’s not on the usual backpacker path including the likes of Porto, Lisbon and the Algarve. In fact, it’s pretty remote and tricky to get it. But it’s absolutely worth it.
Madeira is an autonomous region located off the northwest coast of Africa and consists of 4 small islands. It’s rugged and green with EPIC volcanic origins making it the perfect place for hiking and exploring.
Despite being full of beautiful beaches and even better hikes, not many people have visited the islands. As a result, it can be difficult to decide where to stay in Madeira.
But don’t worry! That’s exactly why I’m here. I’ve compiled the best areas to stay depending on your travel budget and style. You’ll also find the best places to stay and things to do in each area.
From the best luxury hotels to budget hostels to rest your head for the night. No matter what your budget or travel style, I’ve got you covered!
So, let’s strap in and get down to business; finding the best area of Madeira to stay for you.
Photo: Chris Lininger
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- Where Is the Best Place to Stay in Madeira?
- Madeira Neighborhood Guide – Best Places to Stay in Madeira
- Madeira’s Four Best Neighborhoods to Stay in
- FAQs About Where to Stay in Madeira
- What To Pack For Madeira
- FAQs About Finding a Place to Stay in Madeira
- Don’t Forget Travel Insurance for Madeira
- Final Thoughts on Where to Stay in Madeira
- Buy Us a Coffee!
Travelling in Portugal is always a good idea but many people miss Madeira off their checklist. It’s an island in the North Atlantic Ocean, near the northwest coast of Africa; and it isn’t the easiest to get to. But I tell you now; it’s worth every minute and penny of your backpacker’s time and money.
If you’re wondering where to base yourself in Madeira, I have you covered. I will dive into the top four areas together in this article. But if you’re short on time, here are my top picks for the best hotel, hostel and Airbnb on the island.
Turim Santa Maria Hotel | Best Hotel in Madeira
With calming rooms, this hotel is one of the best places in Madeira to stay if you want to be in the heart of Funchal City. It’s a clean, modern building with a restaurant and bar on-site, which provides a delicious breakfast daily.
It’s the best place in Madeira to stay if you’re after a bit of luxury after a day on your feet.
Jaca Hostel Funchal | Best Hostel in Madeira
Located in the heart of the Madeira area, this small hostel in Madeira has all the charm and colour you could want for your holiday. Located in Funchal, you’ll be in the best location to stay in Madeira.
Located in Funchal, Jaca Hostel offers an inner yard, kitchen and balcony. Once a family home from the 19th century, it has since been remodelled to be a warm home for travellers.
It’s the perfect place to stay if you’re solo travelling to Madeira or if you’re just up for the social vibes of a hostel.
Pirate House Seafront Private Pool Garden Funchal | Best Airbnb in Madeira
If you’ve got cash to splash for your trip to Madeira – splash it here!! This incredible oceanfront house comes with an EPIC outdoor swimming pool and a big tropical garden overlooking the sea. With one double room and one room with two singles – it’s an ideal spot for families or group getaways.
If you can bring yourself to leave the property (harder said than done), you’ll be located in the charming Old Town centre. A mere 200m walk to the city centre, the beach and delicious restaurants.
But there’s plenty to choose from…
Below you’ll find a map for easy navigation so you can start sussing out the place. Read on through if you want to see our recommendations.
Madeira Neighborhood Guide – Best Places to Stay in Madeira
Funchal
Funchal is easily the best choice when you’re deciding where to stay in Madeira for your first time. As the capital city of Madeira, it has a good collection of accommodation options as well as plenty of historical landmarks and natural gardens to explore.
Santa Cruz
Santa Cruz is a small coastal town that’s close to Funchal and to the airport, so you won’t have to travel far to get in and off the island or to see a bigger city.
Calheta
Calheta is on the sunny side of the island and has great weather almost year-round. This is why it’s become a popular choice when people are deciding where to stay in Madeira for families as it offers a popular beach as well as all the outdoor activities and water sports you could ask for.
Machico
If you like to stay in an area that has lots of amenities without the busy city vibe, then Machico is a good choice. It’s not as large as Funchal but still has lots of restaurants, bars, shops, and hotels.
Madeira is an awesome place to stay in Portugal. Unfortunately, the islands are fairly difficult to navigate due to the lack of public transport between neighborhoods. That’s why it’s important to choose which area to stay in Madeira area that is most suited to what you want out of your trip!
Funchal is the capital of the island and offers the best range of attractions, as well as easy access to outdoor activities and some of the best hikes on Madeira. It’s the best area to stay in Maderia on your first visit and is full of bars and restaurants.
If you’re wondering which part of Madeira is the best for travelling on a budget, you can’t go wrong with Santa Cruz. It’s a small beach area and is close enough to Funchal so you can explore the big city without paying higher accommodation prices.
Photo: Chris Lininger
Calheta is the best area in Madeira to stay in if you just want to chase the sun. It’s a vibrant area full of shops and restaurants but has a laid-back and relaxing atmosphere. It’s also an ideal destination if you’re looking for accessible hikes and a good sandy beach.
Finally, Machico is the other small city (after Funchal) well positioned to some of the most beautiful nature on the island.
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Madeira’s Four Best Neighborhoods to Stay in
Deciding where to stay when backpacking in Madeira is no simple task. But you know what? I’m up for the challenge. Below, you’ll find Madeira’s finest of areas – whether you’re after a cheap bed, child-friendly or luxury villa, I’ve got you covered. Let’s get into it.
1. Funchal – Where to Stay in Madeira on Your First Visit
COOLEST Thing to Do in Funchal – Head up to Monte and take the cable car for the most amazing sea views and its surroundings.
BEST Place to Visit in Funchal – Visit the Quinta das Cruzes museum to explore the history of the captain who discovered Madeira Island.
Funchal is located on the south coast and is easily the best area to stay in Madeira Island for your first visit. As the capital of the island, it has plenty of accommodation options, historical landmarks and natural gardens to explore.
It’s also laden with restaurants, so you’ll never have to venture far for a bite to eat. You’ll find pebble beaches to relax on such as Praia Formosa.
Staying in Funchal will also help you overcome the issue of transport on the island. Despite being fairly small, Madeira can be hard to navigate as there aren’t any public transport links between the different areas.
In Funchal, you’ll find plenty of tour companies that will help you travel around the island without too much fuss.
Hotel Orca Praia | Best Hotel in Funchal
Set on a cliffside in one of the most stunning locations imaginable, this hotel on the south coast of Madeira offers a touch of luxury and majesty. It’s right next to the beach and has spacious rooms with balconies, as well as a pool with staggeringly beautiful views. It’s close to the city centre as well, so you won’t have to go far to explore.
Jaca Hostel Funcha | Best Hostel in Funchal
Located in the heart of the city, this small hostel on the south coast of Madeira has all the charm and colour you could want for your holiday. It is a one-minute walk from the city hall. Located in Funchal, Jaca Hostel offers an inner yard, kitchen and balcony.
Pirate House Seafront Private Pool Garden Funchal | Best Airbnb in Funchal
This incredible oceanfront house comes with an EPIC outdoor swimming pool and a big tropical garden overlooking the sea. With one double room and one room with two singles – it’s an ideal spot for families or group getaways.
The interior and exterior of this Airbnb will blow your mind. If you can bring yourself to leave the property (easier said than done), you’ll be located in the charming Old Town centre. A mere 200m walk to the city centre, the beach and delicious restaurants. You’ll be located in a great spot in the best town to stay in Madeira.
Things To See and Do in Funchal:
- Wander through the European-inspired botanical gardens.
- Join a sunrise hike from Pico do Arieiro to Pico Ruivo.
- Head down to the local market Mercado dos Lavradores for the smells and flavors of the city.
- Explore the Old Town and wander down the Rua de Santa Maria to take in the artwork.
- Take some great photos of the gorgeous Gothic Se Cathedral.
- Wander through the gardens and mineral museum at the Monte Palace Madeira.
- Take some pictures and hang out at the café at the Pico dos Barcelos Lookout.
- Try some local wine or cocktails at Bar Number Two, Old Town Bar, or Hole in One.
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View on Osprey View on REI2. Santa Cruz – Where to Stay in Madeira on a Budget
COOLEST Thing to Do in Santa Cruz – Take in the fabulous views at the Cristo Rei de Garajau Viewpoint
BEST Place to Visit in Santa Cruz – Take a trip to the Aquaparque Madeira to amuse the kids with water slides!
Santa Cruz is a small coastal town on the east coast, close to both Funchal and the airport. So you won’t have to travel far to and from the island or a bigger city. This makes it the best choice when you’re trying to decide the best part of Madeira to stay on a budget.
This charming town has great access to beaches and numerous attractions, so you can enjoy an action-packed trip. You can also head into Funchal at any time to enjoy the big city, before retreating to your quieter, cheaper base.
Sea View Apartment | Best Hotel in Santa Cruz
This spacious apartment is the perfect spot for your Maderia getaway. You’ll be able to enjoy the tranquil sea views from your balcony as you sip on a coffee (that you can make in the coffee machine provided!)
You’ll be located close to many restaurants and supermarkets. It’s super easy to get to the highway. Plus, you’ll have a fully equipped kitchen for those who can’t be bothered going out or just want to save a few euros.
Albatroz Beach & Yacht Club | Best Luxury Hotel in Santa Cruz
There’s nothing quite like a hotel in Madeira Island with stunning views from every window. If you’re looking for spacious rooms and a pool with ocean vistas, Albatroz is the place to be.
With 400m of private sea-front, there will be no need to fight for your spot on the sand. This 5-star hotel is everything and more when you dream of luxury by the beach.
Casa Miradouro 2 | Best Airbnb in Santa Cruz
Couples will love this apartment for its amazing city views, beach and countryside. It’s got clean, bright decorations and is close to everything. It’s reasonably priced, so you won’t have to break the bank to enjoy a holiday on the beach. If you’re travelling as a couple, you’ll love this one.
Things To See and Do in Santa Cruz:
- Marvel at the beautiful architecture of the Igreja de São Salvador Church.
- Play a round at the Santo da Serra Golf Club.
- Go diving at the Haliotis Dive Center Madeira.
- Take in the views at the viewpoint known as Miradouro de Machico.
- Try the local food at Restaurante Gonclaves, Taberna do Petiscro, or the Franco Wine Bar & Restaurante.
- Join a hike of Caldeirão Verde Levada – incl. hotel pick up and drop off.
- Let the kids enjoy some high-speed action at the Indoor Kart Madeira.
3. Calheta – Best Neighborhood in Madeira for Families
COOLEST Thing to Do in Calheta – Head down to the popular beach Praia da Calheta for swimming and sunbathing.
BEST Place to Visit in Calheta – The Museu de Arte Contemporânea da Madeira for a look at the island’s art scene.
Calheta is on the sunny side of the island and has great weather almost year-round. It’s become a popular choice for where to stay in Madeira for families, as it offers a friendly beach and water-sport activities.
It’s one of the best areas in Madeira Island if you enjoy windsurfing, canoeing, snorkelling or anything else, you’ll find it here.
This area is the best place to stay in Madeira for hiking trails (well at least one of the best!). So if you’re up to it, lace up your hiking shoes and head out to explore the region on foot!
Saccharum | Best Hotel in Calheta
This hotel offers the perfect luxurious experience to anyone with a bit more to spend on accommodation. It’s also one of the coolest and best areas to stay in Madeira.
Each room was designed by a local artist. In addition, the decor is based on a sugar cane theme, which makes for some interesting images! There’s a restaurant, an incredible outdoor infinity pool, and sporting facilities.
Villa Palheiros | Best Luxury Airbnb in Calheta
Designed for up to six guests, this villa in Madeira is a good choice when you’re trying to decide where to stay in Madeira for families. It’s in a quiet area and offers great views and an infinity pool.
Everything you’ll need during your stay is either in the house or within a short drive away. You’ll be in a great location in one of the best towns to stay in Madeira.
Casa das Abertas | Best Airbnb in Calheta
This lovely modern apartment has great views and enough space for up to four guests. The best thing about this accommodation is the sun terrace, which provides lots of natural light and views over the ocean. It also boasts a full kitchen, two bedrooms and lots of restaurants and shops within a few minutes drive.
Things To See and Do in Calheta:
Photo: Chris Lininger
- Get out into the sea and try your hand at some water sports.
- Have a meal at Restaurante Estrela, or Leme Marisqueira.
- Relax with a drink at Bar Formiga or Bar Calheta Beach.
- Head to the Museu de Arte Contemporânea to marvel at the art and the views.
- Check out the Sugar Cane Mill and Museum in Calheta.
- Try the Levadas of Rabacal walk, which can be adjusted to suit beginners to hiking.
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Grab an eSIM!4. Machico – The Alternative City (to Funchal)Vibes
COOLEST Thing to Do in Machico – Test yourself on the famous Vereda da Ponta de São Lourenço hike.
BEST Place to Visit in Machico – Check out the black sand beach at Sao Roque Beach.
If you’re wondering where to stay in Madeira for hiking trails, Machico is home to some of the best hiking trails in Madeira.
It also has lots of popular and sometimes quirky beaches, as well as chances to enjoy outdoor activities like swimming and water sports. The food is also spectacular in this area, with some of the best seafood restaurants you’ll ever step foot in!
If you like to stay in an area that has lots of amenities without the busy city vibe, then Machico is a good choice. It’s not as large as Funchal but still has lots of restaurants, bars, shops, and hotels. It’s also really close to the airport, so you won’t have to worry too much about transport during your stay.
PortoBay Serra Golf | Best Hotel in Machico
If you have a little extra to spend, this hotel is great when you’re deciding where to stay in Madeira for one night or longer. It’s surrounded by gardens and offers direct access to the golf club, as well as a restaurant with homemade delicacies.
There are lots of common spaces in the hotel where you can relax and read, play games, and get to know fellow travellers.
The Village House | Best House in Machico
If you’re dreaming of the perfect house to escape to in Medaira without breaking the bank, you’ve found it. The beautiful decor inside makes you feel at home. To save even more euros – whip up your own meals in your own fully equipped kitchen!
Close to the beaches, restaurants and shops – this house will have you close to everything you need.
Villa Bella | Best Airbnb in Machico
This apartment is ideal if you want to be in the best area of Madeira for hiking and other outdoor activities. It has three bedrooms sleeping up to six guests, and is close to the beach with great views over Machico.
Things To See and Do in Machico:
Photo: Chris Lininger
- Relax at the popular Praia de Machico beach.
- If you’re looking for a quieter beach, try the golden sand beach of the Banda D’ Alem.
- Check out the Levada dos Maroços hike.
- Follow the trail up to Viewpoint Portela to take in rewarding views.
- Explore the caves at Furnas do Cavalum.
- Have a meal at the Blue Restaurante, O Secreta, or Restaurante Lily’s.
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Hide Yo’ Money!FAQs About Where to Stay in Madeira
Here’s what people usually ask us about the areas of Madeira and where to stay.
What To Pack For Madeira
Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art we have perfected over many years.
Ear Plugs
Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.
Hanging Laundry Bag
Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.
Sea To Summit Micro Towel
Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.
Monopoly Deal
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Grayl Geopress Water Bottle
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Check out my definitive Hotel Packing list for even more top hostel packing tips!
FAQs About Finding a Place to Stay in Madeira
Here’s what people usually ask me about the areas of Madeira and where to stay.
Don’t Forget Travel Insurance for Madeira
Unfortunately, things can go wrong when you least expect it. This is why good travel insurance is essential before you head on your trip to Madeira.
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
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SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
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Final Thoughts on Where to Stay in Madeira
Madeira is an island that seems made for people who enjoy the outdoors. It’s a haven for hikers and beach lovers alike but is often missed by travellers visiting Portugal.
If you’re still unsure of what area to stay in Madeira, you can’t go wrong with booking the best hostel in Madeira; Jaca Hostel Funchal. The location is unbeatable, and the rooms on offer range to suit any type of traveller.
However, if you’re after something more upmarket, the stylish Turim Santa Maria Hotel has everything you could need for a comfortable trip.
Wherever you end up staying in Madeira, you’re in for an off-the-beaten-track paradise. So, pack those hiking boots and get your booty over to Madeira.
- Check out our ultimate guide to backpacking around Portugal.
- Figured out where you wanna stay? Now it’s time to pick the perfect hostel in Madeira.
- Or… maybe you want to check out some of the Villas in Madeira instead.
- Next up you’re gonna need to know all the best places to stay in Portugal to plan your trip.
- Planning out the hikes in Madeira that you want to do is a great way to maximise your time.
- Save yourself hassle and money and get an international sim card for Europe.
- Swing by our super epic backpacking packing list to prep for your trip.
- Our in-depth Europe backpacking guide will help you plan the rest of your adventure.
Photo: Chris Lininger
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