Top 5 BEST Boutique Hotels in Funchal in 2024

Portugal’s most beloved island, Madeira, is endearingly known at the “Pearl of the Atlantic.” A beach paradise, nature-buff’s overdose and a wine-lover’s heaven, Maderia is a bucket-list hotspot.

From catching glimpses of dolphins and whales from a Catamaran cruise and to admiring the beauty of the volcanic valleys, there’s no shortage of great things to see and do. After spending 4 days in Madeira I just knew I needed to see more! So, I recently spent 7 days in Madeira as a solo traveler and fell in love even more with this gorgeous island.

When it comes to choosing where to stay in Funchal (the island’s capital), there are so many options it can be a little overwhelming at first. Whittling out the best isn’t easy either, Madeira isn’t lacking in great hotels.

Read on to discover the 5 best boutique hotels in Funchal to help make that decision a little less tricky!

Best Boutique Hotels in Funchal

1. The Vine

Right in the heart of Funchal, steps from the ocean and next door to The Plaza, Madeira’s top shopping destination, The Vine is one of Funchal’s all-time favorite design hotel. I’m not alone: for three consecutive years, the World Travel Awards crowned it Europe’s leading design hotel.

As the brainchild of Nini Andrade Silva, Madeiran interior designe, this is a hotel packed with style and substance. Corridors decked out with deep, velvety purples and rooms representing the seasons are a nod to Madeira’s most famous export.

Wine is just as much a part of The Vine as a vine is in wine. Uva, the Portuguese word for grape, is the hotel’s fantastic restaurant which serves Madeiran classics. Uva Wine Bar is the place to go to savor authentic Madeira. When the sun’s out, there’s nowhere better than 360, the poolside bar on the hotel’s rooftop.

Rooms start from €160 including breakfast. Be sure to book early to get the best deals, this is a popular spot and rooms sell fast.

2. Les Suites at The Cliff Bay

Intimate and personal with just 23 suites split across two century old houses, Les Suites takes luxury and adds another dimension. A sister property to the luxury and well-known Cliff Bay hotel in Funchal, Les Suites is an adorable boutique hotel with so much to offer.

Outside, a gorgeous infinity pool and Jacuzzi with a poolside bar offer unspoiled views of the bay and are the hotels ideal places for relaxing and unwinding. There is also a private jetty that gives you direct access to the Atlantic Ocean. 

Inside, elegant suites starting at 60 sqm provide the ultimate in privacy and comfort. Every room comes with a balcony and generous living space, not forgetting the complimentary bottle of wine and fruit platter waiting for you on arrival!

There are also not one, but two restaurants on property for you to enjoy, allowing for you to experience Madeira cuisine just steps away from your room. Restaurant Avista serves delicious Portuguese staples, whilst sister restaurant Avista Asia adds an eastern twist to Madeiran produce.

Better still, staying here gives you access to all the facilities and restaurants at The Cliff Bay. Two Michelin starred Il Gallo d’Oro can’t be missed, so be sure to book a table for a dinner to remember! 

Rates start at €475 in the low-season and €625 in summer. As always, booking early is the best way to get a great deal.

3. Quinta Jardins do Lago

Filled with antiques and exuding history, this classic 18^th century Quinta is set on a hillside overlooking Funchal’s fascinating old town. General Beresford, the British Army’s commander on the island, lived at Quinta Jardins do Lago during the Napoleonic wars, which is just such a neat piece of history about this boutique hotel in Funchal!

The Beresford Restaurant is a grand affair, with glitzy chandeliers and centuries-old paintings adorning the walls. For a glass of Madeira or Port, O Visconde Bar is a cozy, relaxed spot to while away the evening. 

The outdoor swimming pool is a highlight, but the best thing about the Quinta, to my mind, is the garden. Over 600 species are planted in the six acres of botanical gardens which surround the hotel. They’re even home to the hotel’s longest serving resident: Colombo the giant tortoise. 

The Quinta’s history, quirky rooms and lush gardens make it one of my absolute favorites in Madeira.

Prices start from €225 when booking well in advance, and hover around €275 during peak season.

4. Se Boutique Hotel

Se Boutique Hotel is a small, friendly, and colorful boutique hotel in the heart of Funchal. What it lacks in size, it certainly makes up for in character. Designed with inspiration from Sé Cathedral, which is right next door, the bedrooms are decorated with blue and white patchwork matching the cathedral’s tiles. 

The indoor pool is one of the best features here. There is also an excellent rooftop bar which offers an enclosed spot to relax and unwind away from the noise of the city streets, with the tower of Sé Cathedral looming overhead. Climbing further up, you’ll reach the terrace which is the perfect place to take in the view of the city with a glass of wine (or two!).

When it comes to dining, there’s an astonishing number of options for a hotel of its size. Traditional Madeiran cuisine is served in O Calhau, whilst Italian restaurant Cosi Scoozi (I think this deserves an award for the cutest restaurant name) dishes up freshly baked pizzas topped with ingredients from the hotel’s own farm. For something a little more indulgent, try out The Lobster Champagne Bar.

Se Boutique is one of the best value hotels in Madeira, with rooms from €125, but you’ll need to be quick and book well in advance to get these great deals.

5. Castanheiro Boutique Hotel

Once you’ve got your head around pronouncing the name (cast-an-ey-ro), Castanheiro is a gem of a hotel. Split across five historic building, the oldest of which dates back to the 18^th century, this charming boutique hotel is in the heart of Funchal. Sé Cathedral, countless museums and some of the city’s top restaurants are just a moment’s walk away.

Filled with beautiful antiques and period furnishings, stepping into Castanheiro is like taking a step back in time. The rooms are a seamless blend of tradition and modern comforts, with bright colors and modern art hanging on the walls. 

The best spot here is the rooftop pool which overlooks the city with views right down to the ocean. To the side of the pool, Pretas Bar serves up healthy snacks with an extensive wine list. This is the kind of spot where a quick glass of wine soon turns in to a whole afternoon soaking up the sun.

For dinner, Tipografia- named in honor of the typography company which occupied one of the buildings- offers a Mediterranean-inspired menu with a serene terrace to dine alfresco. 

Castanheiro is another hotel which offers excellent value for money. Rooms start at €180 and even in the middle of summer can be had for as little as €200. Book now to get the best rate.

Summary

Whilst choosing your hotel in Madeira, or for any trip, can be a tough decision to make, I’m certain that if you pick one of these boutique hotels in Funchal, you won’t be disappointed. 

They’re all truly unique but what they all offer is warm Madeiran hospitality, top locations, and excellent amenities. All are within walking distance of the crystal-clear waters of the Atlantic and make the perfect bases for exploring Funchal and Madeira. 

Now you’ve seen my recommendations of the top five boutique hotels in Madeira, there’s no time like the present to start checking availability!

And, if you need some guidance on how long to stay in Madeira, I have just the article for you! This article will cover my honest recommendations for important considerations for deciding how long to book your trip to Madeira for!

FAQs

What are the best boutique hotels in Funchal?

There are countless fantastic hotels all across the island. The Vine, Les Suites at The Cliff Bay, Quinta Jardins do Lago, Sé Boutique Hotel and Castanheiro Boutique Hotel are my 5 favorites.

Do prices vary seasonally?

Yes, but not as much as you might think. Madeira’s climate makes it a popular destination year-round, so unlike some places, hotel prices don’t shoot up too much to make the most of a short season. The best rates can be found outside of European school holidays, so if you have flexibility over your travel dates, avoiding Christmas & New Year, the weeks either side of Easter and July & August will likely leverage lower room rates.

How early should I book a hotel room in Madeira?

As early as possible. Whilst there are plenty of options on the island, the most popular hotels do get booked out months in advance. This is particularly the case for the smaller boutique spots. Additionally, it’s usually the case that the earlier you book, the better the rate you’ll get.