15 Best Boutique Hotels on Madeira Island in 2024

Are you looking for the best boutique hotels on Madeira Island? Then you’ve come to the right place. Madeira is a wonderful destination to visit and to celebrate your holidays. Boutique hotels in Madeira are known for their distinct advantages such as an intimate ambiance, splendor views and unique designs. After living for 7 months on this amazing island we felt privileged to experience some of the best boutique hotels in Madeira. For many of us, the hotel you book can make or break your well-deserved holiday. Therefore it’s important to choose the right fit for you. To help you choose to book one of the best boutique hotels in Madeira I reviewed and ranked 15 of them in this article.

What are the best areas to stay in Madeira?

Generally, the south coast of Madeira has more boutique hotel options and tends to be sunnier than the north coast. However, which boutique hotel on Madeira Island suits you best depends on your preferences, duration of stay, and planned activities.

If you’re seeking a blend of sunshine, hiking, and excellent cuisine, Funchal or Calheta would be ideal choices. However, other options on the south coast, like Machico, Ponta do Sol, Ribeira Brava, and Jardim do Mar, also offer great alternatives.

Use our map below to see in which areas the best boutique hotels are located:

15 Best Boutique Hotels Madeira Island

Belmond Reid’s Palace

Perched on a cliff with captivating views of Funchal and the Atlantic Ocean, the historic Belmond Reid’s Palace Hotel exudes timeless charm. Established in 1891, Belmond Reid offers classic and elegant rooms with modern amenities, maintaining the traditional interior design that adds to its allure. Many celebrities have stayed here including Winston Churchill. Staying at Belmond Reid’s Palace transports you to an 18th-century fairytale.

This boutique hotel in Madeira has several outdoor swimming pools, four restaurants (including a Michelin-starred one), afternoon tea, a bar, spa, wellness center, tennis court, and more. An elevator conveniently takes guests down to sea level, where natural rock pools await their enjoyment.

With 158 rooms it might be discussable if it officially classifies according to the standards for a boutique hotel. But despite the size, Belmond Reid’s Palace Hotel has its focus on nature, environment, cuisine, history, cultural immersion, and attentive service.

The whole experience stays with us and the staff is very friendly and extremely professional. What we liked the most besides the whole atmosphere was the stunning location with the beautiful gardens.


In contrast to the historic Belmond Reid’s Palace Hotel, The Vine is a modern design luxury hotel. It overlooks the sea and port of Funchal. This 5-star boutique hotel offers all the convenience for a comfortable stay in the center of Funchal. From the panoramic outdoor pool, you’ll overlook the city and mountains. The spacious rooms and the great Uva restaurant on the rooftop terrace are some of the facilities that made our stay at The Vine unforgettable. It is a perfect place to explore Funchal City as you walk right into the heart of the center as soon as you step out. Because they have a parking garage, you can easily go on day trips with your rental car or book some of the amazing tours to explore Madeira Island


1905 Zino’s Palace

1905 Zino’s Palace is a charming boutique hotel in Madeira. It’s located in Ponta do Sol very close (200 meters) from Lugar de Baixo Beach. Because the hotel sits on a hill you will have an amazing sea view and can expect some breathtaking sunsets. The fully renovated historic property is neat with modern rooms offering every comfort necessary.


This mythical boutique hotel offers lodging complete with an outdoor swimming pool, complimentary private parking, a garden, and a terrace. The property features amenities such as room service and a concierge service, complemented by free WiFi throughout. The food is excellent with changing daily specials served by very friendly staff.


Okulus Villa Madeira

Although Okulus isn’t a hotel, but a spacious 4-bedroom villa, it deserves a spot in this list of the best boutique hotels in Madeira. It offers everything you’re looking for in case you love boutique hotels, but prefer a more private stay. It’s located in the Old Town with beautiful views of the ocean and Funchal. The spacious 300m2 villa features a private pool on the rooftop terrace with a garden and free parking. With your washing machine, a fully equipped kitchen, and barbecue facilities, Okulus is your luxury boutique home away from home. 


We have experienced Okulus and loved the mesmerizing sunset views from the terrace together with the 180-degree ocean views that you get throughout the property. If you take the outdoor stairs down you will get to a small beach which feels like a private beach as not many people come here. A perfect place for couples that want privacy, or for big families or friend gatherings. With 2 bedrooms with a large bed and 2 bedrooms with 2 single beds, a total of 8 people can sleep in Okulus. Highly recommended! 


Castanheiro Boutique Hotel

The name says it all. This welcoming four-star boutique hotel in Madeira is set in Funchal, close to Marina do Funchal. It has a fabulous Mediterranean restaurant attached called Tipografia.
This distinctive hotel concept encompasses five historically classified buildings and takes guests on a fascinating journey through three centuries of Funchal’s history. The result is a unique boutique hotel in the historic part of the city. Guests can enjoy the outdoor pool and spa center with a hydrotherapy pool, sauna, Turkish bath, massage rooms, and a relaxing area.


Les Suites at The Cliff Bay by PortoBay

Les Suites at The Cliff Bay is an exclusive five-star boutique hotel on Madeira Island. This luxury hotel in Funchal is located in the Sao Martinho district and provides guests access to a hot tub, sauna, and beautiful infinity pool overlooking the ocean.

boutique-hotels-madeira-Les-Suites -The-Cliff-bay-room

A total of 23 luxury suites bring together comfort and tranquillity, coming with a private balcony overlooking the ocean. The Maisonette Suites have everything you look for. This boutique hotel in Madeira includes three restaurants, an indoor pool, a gym, and a Pilates room, you will enjoy an incredible all-inclusive luxury treatment at the Cliff Bay Funchal. 


Hotel Quinta do Furão

Quinta do Furão is a characteristic boutique hotel in Madeira perched on a cliff overlooking the rugged coastline of the north coast. Facing east, you can watch the sunrise every morning from your balcony. The rooms at Hotel Quinta do Furão are decorated with soft natural colors and elegant wooden furniture. Most of the rooms have a gorgeous view overlooking the cliffs, ocean, and vineyards surrounding the hotel. From the hotel’s garden, you can even see a waterfall pouring into the ocean from the rough coastline. A truly unique sight in Madeira!


The infinity pool in between the vineyards is a perfect way to cool off and relax after a day of exploring. Other wellness facilities offered by the hotel are a sauna, fitness room, and massage room. Quinta Do Furão restaurant serves a selection of typical Madeiran dishes and international gourmet cuisine including a very extensive breakfast menu. The breakfast deserves a special mention because it was out of this world! I recommend this boutique hotel as well to be a very good base to explore the northeast of Madeira Island.


Boutique Hotel Cajú

This stunning boutique hotel in the heart of Funchal comes with comfortable and exceptionally clean rooms. boutique Hotel Cajú is a member of the Divine Hotels Collection group which also owns The Vine Hotel.


It’s a boutique hotel with a human touch and the restaurant is our favorite in Funchal as it serves delicious food! Their incredibly stylish interior is super Instagrammable with lots of jungle plants around. If you want to you can also sit outside. With a super healthy but tasty menu, this is your go-to spot if you love smoothie bowls, want vegan options, or a super tasty bowl filled with veggies, salmon or chicken, and rice or couscous.

This boutique hotel in Funchal is close to museums, other restaurants, the Municipal Garden, Santa Catarina Park, and the Municipal Theater. Everything is within walking distance which makes this boutique hotel a great option if you like to stay in the city center of Madeira.


NEXT – by Savoy Signature

The boutique hotel NEXT by Savoy Signature is 500 m from Funchal City and has its own private beach. In 2020 this wonderful hotel was completely renovated. The 9-floor city boutique hotel has 129 rooms in total. The property offers diverse amenities, including a garden, a terrace, and a restaurant. Additionally, it provides facilities such as a sauna, nightclub, and a shared lounge.

This boutique hotel in Madeira is absolutely beautiful, situated with beautiful ocean-view rooms. The layout of the room is very large, with lots of space and the interior design is stunning and has some of the most comfortable beds! There is also an onsite car park which is included when you stay a this boutique hotel which is very handy.


Estalagem Da Ponta Do Sol

This fantastic boutique hotel in Ponta do Sol is one of the most luxurious places to stay in Madeira. Perched on a cliff facing the Atlantic Ocean, Estalagem Da Ponta Do Sol offers minimalistic-style rooms with comfy beds, floor-to-ceiling windows to enjoy the incredible views and a balcony.

The incredible outdoor infinity pool and hot tub overlooking the ocean and Ponta do Sol are breathtakingly beautiful. Another great feature is the on-site spa and wellness center where guests can pamper themselves after a day of exploring. 

boutique-hotels-madeira-estalagem-da -ponta-do-sol

Golden Residence Hotel 

The Golden Residence Hotel is closely located to Praia Formosa, the largest beach in Funchal. This 4-star hotel offers 172 spacious rooms including family rooms and apartments. All rooms are equipped with air conditioning, a flat-screen TV, Wi-Fi, minibar, a balcony, and more. The on-site restaurant Golden Flavours serves regional and international cuisine made with fresh produce from the hotel’s vegetable garden. Other amenities are the Golden Spa which offers various health and beauty treatments, including hot stone massages. It also features a heated indoor pool, a gym, and a meditation room. A perfect choice to stay in Madeira for families and couples who are looking to experience a boutique hotel in Madeira.

Golden Residence Hotel Madeira

The Cliff Bay by PortoBay

If you’re looking for a luxury stay in Madeira with all the comforts you need, then the boutique hotel Cliff Bay by PortoBay is the answer. With a wide range of luxurious, large rooms with ocean views, 3 salt-water swimming pools, three jacuzzis, and an incredible fitness and wellness center, you can completely recharge in the hotel after a day of exploring.

The multiple restaurants and bars on-site will tickle your taste buds while you can enjoy the breathtaking views of Madeira’s south coast. One of the best boutique hotels in Madeira to stay for couples. 

boutique-hotels-madeira-The-Cliff-Bay - PortoBay-Room

Savoy Palace

The Savoy Palace Resort brings contemporary luxury to Funchal. Located in the touristy area of São Martinho, you are just a short, scenic walk away from the heart of Funchal’s charming Old Town. The eye-catcher of Savoy Palace is the infinity pool overlooking Funchal and the Atlantic Ocean. Furthermore, the hotel provides another outdoor swimming pool, a fitness center, evening entertainment, and a 24-hour front desk.

The great location, facilities, stunning views of the rooms, and access to your own beach are all the ingredients you need for an unforgettable stay.

Savoy Palace bar

Sé Boutique Hotel Madeira

Sé Boutique Hotel Madeira is located in the heart of the city of Funchal, just minutes away from the main street but in a calm area. A perfect base to explore Funchal on foot from. The boutique hotel facilitates a shared lounge, terrace, restaurant, and impressive rooftop bar. The rooftop cocktail bar is a must and you’ll have incredible sunrise and sunset views. The tidy rooms have a modern look and offer all the amenities you expect. There are three types of rooms, a standard double room, a deluxe room, and the Junior Suite.

The restaurant offers quite some choices (sweet and savory) for breakfast. Popular points of interest to visit near the accommodation include Almirante Reis Beach, Marina do Funchal, and the Cathedral of Funchal.


Savoy Saccharum Resort

Savoy Saccarum Resort is one of the most luxurious boutique hotels to stay in Madeira. This 5-star resort features spacious and luxurious rooms with amazing sea views. It is a perfect resort for either couples or families. Guests can use the squash court, there is a playroom for children and you can easily access Calheta Beach. For colder days guests can enjoy the heated indoor pool. But for the warmer days, 2 outdoor swimming pools are available with large sun terraces. The rooftop swimming pool is the eye-catching feature of Savoy, providing breathtaking views over the ocean. There you will also find the rooftop bar serving a variety of beverages. The perfect place to sip on a cocktail while enjoying the amazing sunset views in Calheta.

boutique-hotels-madeira-Savoy Saccharum-outdoor

How to get around in Madeira

The best way to get around the island and explore the best of Madeira is with a rental car. Public transport is not very convenient and doesn’t come to the best spots on the island. You can also rent a scooter in Madeira if you prefer that. However, with the ever-changing weather, especially in the mountains, renting a car is recommended. Before booking your accommodation in Madeira, you should check if there is parking for your rental car. Some hotels and accommodations have private parking included, but this is not always the case.

→ Check the Madeira car rental deals here and book before prices go up (it’s free cancellation)


Read in our complete guide everything you need to know about Car hire in Madeira

Book a tour to explore Madeira Island

Another option to explore Madeira Island is to book a tour. For some activities such as whale watching it is highly recommended to book your tour upfront to secure your spot.

More Madeira travel inspiration

I hope you enjoyed this blog post about the best boutique hotels in Madeira. And of course, you’ve found a great place to stay!

For more in-depth information about Madeira, head over to our other travel blogs.

All Madeira Articles

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30 Best Viewpoints in Madeira – The Ultimate Guide

30 best hikes in Madeira – The Ultimate Guide

15 best Sunrise Viewpoints in Madeira – The Complete Guide

15 Best Sunset Viewpoints in Madeira – The Complete Guide

20 best levada walks in Madeira – The Complete Guide

25 best waterfalls in Madeira – The Ultimate Guide

25 best things to do in Funchal – The Ultimate Guide

12 best beaches in Madeira – The Complete Guide

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