Nine Wonderful Hotels In Madeira
- 1 day ago
- 7 min read
Our favourite hotels on the Portuguese island of Madeira

Article summary>>
In this article, we have a look at some of our favourite hotels in Madeira.
(In no particular order)
Reid's Palace
The Reserve
Savoy Palace
The Cliff Bay
Casa Velha do Palheiro
Quinta da Casa Branco
Barcelo Funchal Oldtown
Quinta Jardins do Lago
Royal Savoy Madeira
Nine Wonderful Hotels In Madeira.
Reid's Palace

Reid’s Palace, A Belmond Hotel, is Madeira’s grande dame, perched on a cliff above the Atlantic on Estrada Monumental in Funchal. Wrapped in subtropical gardens, it has the sort of old-world confidence that comes from doing things well for a long time, yet it never feels museum-like at all. Terraces and shaded paths lead to three pools, including a tidal pool with ocean access, and views that make even a swim feel cinematic.
Inside, the mood is classic and quietly indulgent, with polished service and rooms and suites that lean elegant rather than showy. The hotel has 126 rooms and suites, many with balconies that catch the light from first coffee to aperitivo. Days unfold easily between the spa and sauna, a game of tennis, and the unmissable afternoon tea served with sea air and just enough ceremony. Dining is a proper itinerary here too, with four restaurants ranging from relaxed to special-occasion, plus a cocktail bar that suits sunset conversations.
Location is part of the charm. You are close to Funchal’s centre, but far enough above the shoreline to feel removed. It is a hotel for travellers who like their luxury timeless, their pace relaxed, and their view non-negotiable. Undoubtedly one of the best hotels on the island.
The Reserve

The Reserve is Madeira’s most discreet new-status address, a boutique hotel-within-a-hotel set on the upper floors of Funchal’s Savoy Palace, created for travellers who like their luxury quieter and their service more personal. Each suite faces the Atlantic, and the feel is contemporary and cocooning, with soft, island-inspired colours and a sense of calm that makes the city outside feel pleasantly distant.
What separates it is the exclusivity. There’s a dedicated Guest Experience Personal Assistant, plus access to the Jacarandá Club, where days begin with an à la carte breakfast and end with an infinity pool and jet pool with panoramic ocean views, cabanas, and poolside butler service. You also have the wider Savoy Palace facilities on tap, including the Laurea Spa for proper restoration between coastal walks and long lunches.
The vibe is polished, modern, and intentionally private, with a low-key confidence that suits couples and grown-up celebratory trips. Location-wise, you’re in central Funchal, close to the waterfront and the city’s restaurants, yet comfortably above it all, in every sense.
Savoy Palace

Savoy Palace is Funchal’s modern grande hotel, a gleaming Atlantic-facing resort on Avenida do Infante, close to the waterfront and an easy walk to parks, museums and the city’s restaurant life. Inspired by Madeira’s lush Laurissilva landscape, it mixes statement scale with a surprisingly soothing rhythm, all light-filled interiors, botanical touches and terraces built for slow afternoons.
Accommodation ranges from smart rooms to larger suites, many with balconies that catch the sea breeze and the Madeira light. Facilities are suitably ambitious. Multiple pools include a rooftop infinity setup made for sunsets, while the Laurea Spa is one of the island’s standouts, with extensive treatment rooms and thermal-style features designed for a proper reset. Gym and wellness programming keep things balanced for anyone who likes their indulgence with a side of virtue.
Food and drink are a serious part of the stay, with a choice of restaurants and bars that let you keep plans flexible, from relaxed poolside bites to more polished dinners, plus rooftop cocktails when the sky turns peach. The vibe is confident, sociable, and resort-sleek, yet the service remains attentive and composed. It suits couples, celebratory trips and families who want five-star ease.
The Cliff Bay

The Cliff Bay is one of those Madeiran hotels that earns its reputation without raising its voice. Perched on a natural promontory above Funchal Bay, it has direct access to the Atlantic and the sort of sea-facing calm that makes you forget your inbox exists. The look is classic, slightly formal, and reassuringly timeless, softened by subtropical gardens and sunlit terraces that keep everything feeling relaxed rather than stiff.
Days tend to orbit the water. There’s an outdoor saltwater pool at sea level, a heated indoor and outdoor pool, and a children’s pool for anyone travelling with small, energetic negotiators. When you want a proper reset, the spa and wellness facilities deliver the quiet, restorative side of a resort stay, and there are tennis courts too, if your idea of holiday includes “a little suffering”.
Dining is a headline here. Il Gallo d’Oro, the hotel’s flagship restaurant, holds two Michelin stars and anchors the experience with cooking that feels special-occasion without the awkwardness.
The vibe is polished, grown-up, and relaxed, with service that knows when to appear and when to disappear. It’s a confident base for exploring Funchal, then returning to the sea and letting the island do what it does best: slow you down.
Casa Velha Do Palheiro

Casa Velha do Palheiro is the kind of Madeiran hideaway that makes Funchal feel wonderfully far away, even though it sits just east of the city on the green, flower-filled Palheiro Estate. Part of Relais & Châteaux, it occupies a restored manor house surrounded by famous gardens and the island’s soft, ever-present Atlantic light.
With 33 rooms and five suites, it keeps the atmosphere intimate and quietly patrician, more country house than resort, with antiques, polished wood, and a sense of calm that encourages slower mornings. Days here are shaped by the estate: there is direct access to Palheiro Golf, plus tennis for anyone who likes their relaxation mildly competitive.
Wellness is handled with real intent at the Palheiro Spa, where you will find a heated indoor pool with massage jets, sauna and steam, and a proper fitness room. Outside, a tiled garden pool sits among loungers and greenery, ideal for a relaxed afternoon with a book.
The vibe is refined, hushed, and deeply restful, with service that feels attentive without hovering. It suits travellers who want Madeira’s nature and elegance in the same breath, then a soft landing back in town when they feel like it.
Quinta Da Casa Branco

Quinta da Casa Branca is the kind of Madeira hotel that makes you forget you are in a capital city at all. Set within a lush botanical garden estate near the centre of Funchal, it feels like a private hideaway, with modern, glass-and-stone architecture sitting comfortably alongside a historic manor house and acres of greenery.
With just 49 rooms, the scale stays intimate, and everything is tuned to a slower pace, mornings on a terrace, afternoons drifting between garden paths and a sun lounger. There are two outdoor pools, one often positioned as the quieter, adults-leaning option, plus a health centre and spa for proper restoration after Funchal’s hills and coastal walks.
Dining is designed to match the setting, with multiple restaurant options and a bar that suits a pre-dinner cocktail without any need for theatre. The vibe is polished but unshowy, calm, green, and quietly romantic, with service that feels attentive and personal rather than performative. It is ideal for travellers who want Madeira’s nature close at hand, while keeping the city’s restaurants, markets, and waterfront within easy reach.
Barcelo Funchal Oldtown

Barceló Funchal Oldtown is a smart, five-star base in the heart of Funchal’s old town, set across six restored 17th-century buildings that keep their original façades and plenty of local character. One of the buildings was once linked to Madeira’s embroidery trade, and the hotel nods to that heritage with interiors that weave in references to island embroidery and traditional wicker basketry, done in a clean, contemporary way rather than anything overly themed.
There are 111 rooms, bright and modern, designed for an easy reset after a day of market wandering and waterfront promenades. The rooftop pool and pool bar are the obvious draw, with wide views that make sunset feel like an event, even if you are only stopping for one drink. Dining is handled with choice and flexibility, with an à la carte restaurant inspired by local embroidery traditions, plus additional bars and restaurants that keep the mood lively without tipping into noisy.
Location is a quiet advantage. You are on Rua da Alfândega, close to the cathedral and Mercado dos Lavradores, and minutes from the marina. The vibe is upbeat, urban, and neatly put together, ideal for travellers who want Funchal on their doorstep.
Quinta Jardins Do Lago

Quinta Jardins do Lago feels like a small miracle in Funchal, a grand old quinta set within botanical gardens, where the city suddenly goes quiet, and the air turns greener. The hotel is built around a historic manor house, with an atmosphere that is elegant but never stiff, the kind of place where polished wood, antiques, and soft light create a sense of calm that starts the moment you arrive. All 42 rooms and suites face south toward the Atlantic and come with balconies, so even downtime comes with garden views and a hint of sea beyond.
Days here are gently structured around the outdoors. There’s a lagoon-style pool surrounded by sun terraces, plus wellness facilities that make it easy to reset between long walks and long lunches, including spa-style touches like a Turkish bath and jacuzzi. Dining keeps things classic and quietly special, with the Beresford restaurant offering a fine-dining evening rhythm and menus that lean on local ingredients with a Mediterranean base, while the Colombo Bistro and bars keep the mood lighter around the pool and through the afternoon.
The vibe is grown-up, relaxed, and deeply restful, ideal for travellers who want Madeira’s garden beauty and Funchal’s restaurants and waterfront within easy reach.
Royal Savoy Madeira

Royal Savoy Madeira is one of those Funchal addresses that feels gently insulated from the world, even though the city is close. Set on the seafront with private ocean access, it has a classic, quietly glamorous air, with wide terraces, subtropical greenery, and a steady soundtrack of waves that does most of the relaxing for you. The hotel has 174 rooms and suites, many designed more like stylish mini-apartments, with kitchenettes and balconies that open to Atlantic views.
The days here are built around water and ease. There are four swimming pools, including an indoor heated option, plus a spa with sauna, steam room, sensorial shower and ice fountain for a proper reset after Madeira’s hills. A gym sits close by for anyone determined to remain virtuous on holiday.
Food and drink keep the pace sociable without turning the volume up, with a choice of restaurants and bars, including the long-running Armada restaurant and a lobby gin bar that leans into sunset hour.
The vibe is polished, grown-up, and reassuringly relaxed, ideal for travellers who want sea air, attentive service, and an easy walk or short hop into central Funchal when they feel like company.
Nine Wonderful Hotels In Madeira - Article 2026
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