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Hotels in Portugal
89 Hotels
Pestana Promenade
Rua Simplicio dos Passos Gouveia Nº 31

The 112-room, three-and-a-half-pearl Pestana Promenade Ocean Resort Hotel is one of Funchal's newer properties, with modern and colorful interiors overlooking the Atlantic. While it's a good 10-minute drive into the historic center, there's direct access from the hotel to a lovely coastal promenade. Rooms are spacious and bright, with balconies or terraces and at least partial sea views, though some guests gripe about the lack of coffee/tea facilities. An included breakfast buffet is served at one of the hotel's two restaurants, and a bar hosts live music.The huge pool area has an infinity edge and floating armchairs -- it's a major highlight. Families with little ones might be better at The Cliff Bay hotel, which has a playground and playroom, and is also nearer the city center.

Baia Azul
Rua Quinta Calaca 1

Hotel Baia Azul is a four-pearl property located a 10-minute walk outside the center of Funchal. While the hotel has always had a fabulous, walkable waterside location directly on the promenade, it didn't reach its full potential until undergoing a complete makeover and reopening in 2016. Now, the 218-room resort is a gorgeous, bright property with top style to boot. Expect spacious and modern rooms with mini-fridges, kettles, glass showers, and balconies with views. Features include an indoor and outdoor pool, small gym, restaurant with good breakfast buffet and terrace seating, well-priced bar, and spa options, but be prepared to pay extra for the safe inside your room and fresh towels. The beachfront here is pebbled, so if you are looking for sand, check out the nearby Golden Residence Apartment Hotel in the same price point.

Hotel do Carmo
Travessa Rego 10

The three-and-a-half-pearl Hotel do Carmo is a stylish boutique property with a central Funchal location. Mid-century modern furniture and vintage details -- much of it authentic -- can be found here, although its 80 minimalist guest rooms don't have the same ambiance. They're small, and are missing considerable amenities, like AC, mini-fridges, coffeemakers, and toiletries, but they do have flat-screen TVs, bathrooms with deep tubs, and more than half have balconies. The hotel's standout feature is a rooftop pool with panoramic ocean views, an attractive restaurant that offers free breakfast, and a lobby bar with a handsome billiards table. However, the hotel lacks a gym. For a more modern alternative in the heart of town, check out Hotel Madeira.

Quinta Da Penha De Franca
Rua Imperatriz Dona Amelia 85 87

The mid-range, 109-room Quinta Da Penha De Franca is housed in an old traditional house and expanded with a more modern annex, set among tropical gardens and with views of the sea. Spacious rooms -- some of which are dated -- come with flat-screen TVs, minibars, and sitting areas, plus some have sea-view balconies. The immediate streets offer plenty of dining, and brief walks take visitors to Funchal's old town marina, cultural landmarks, and tourist attractions. On-site amenities, however, are limited to a pool with lots of loungers, restaurant with adjacent bar, and pathway to the hotel's sister property for direct access to the sea. Travelers may prefer Four Views Baia, which has more modern rooms, plus spa and fitness facilities.

VidaMar Resort Hotel Madeira
Estrada Monumental 175-177

The Vidamar Resort Madeira is a sleek, contemporary, upscale resort set on a cliff that overlooks the Atlantic Ocean. Clever design means that superb views can be enjoyed from numerous vantage points, including in the 300 bright, minimalist guest rooms. Three swimming pools are rarely crowded and the spa is particularly stylish. Dining options are aplenty and a half-board rate is standard, and though there's a sushi restaurant the buffet choices can get dull. Vidamar is certainly one of the chicer options on the island, but it's a 10-minute drive to the sands of Praia Formosa. For traditional luxury and more history check out Belmond Reid's Palace, just up the coast.

Pestana Palms
Rua Gorgulho 15 17

One of the best-positioned properties on Madeira, the upscale, 76-room Pestana Palms Ocean Aparthotel is located along the water and a 20-minute walk from Funchal's center. It boasts private, direct access to the sea from the large pool area, as well as an on-site dive center. A spa, sauna, whirlpool, and full gym with a sea view add to the property's relaxation factor. The generously sized rooms are admittedly aging -- think brown striped carpet, honey-toned wood furniture, and plaid throws on the bed. However, many offer sea-view balconies and all have basic kitchenettes. The two restaurants and bars receive positive reviews, and meal plans are available. Note, however, that in-room safes and umbrellas by the pool require fees. Travelers looking for a bit more modern property may prefer the Melia Madeira Mare Resort & Spa.

Pestana Village
Estrada Monumental 194

An upper-middle-range, village-style complex set in beautiful gardens, the Pestana Village Garden Resort Aparthotel certainly lives up to its name. Though set off the main coastal road, this 92-room property feels secluded and peaceful and it's just 10 minutes on foot to the beach. Rooms are spacious and bright, with simple country decor, kitchenettes, and balconies or terraces -- some with sea views. However, there is no air-conditioning and some bathrooms look a bit dated. Shared facilities with a neighboring sister hotel means access to at least two of everything (and beach access), though the resort's own pool, spa, and dining options are ample. For something a little different there's also Ocean Gardens, a small, family-owned property set in a garden that offers better vistas, too.

Pestana Casino Park
Rua Imperatriz D. Amélia, 55, Quinta da Vigia

Pestana Casino Park Hotel is a 379-room upscale property occupying a landmark piece of iconic modernist architecture. Its location is excellent, too, set on a cliff top overlooking the harbor and with Funchal's pretty, historic center within walking distance. Rooms are spacious and bright -- with a few exceptions -- and while most have sea views, others overlook a large building site. The style throughout is thankfully contemporary, which isn't always the case with the Pestana chain. The colorful spa is a highlight, an infinity pool has superb sea views, and eating and drinking options are excellent. A buffet breakfast is included, with sparking wine. Rates are reasonable for the category, although families with kids are probably better off in the neighboring Pestana Carlton Madeira.

Enotel Lido Madeira
Rua Simplicio dos Passos Gouveia, 29

Funchal is known for its steep hills, but this 317-room, upper-middle-range all-inclusive is in a walkable area with access to the oceanfront promenade. The hotel's exterior resembles a cruise liner, and the large outdoor pool, kiddy pool, and massive deck all face the ocean. The spa's saltwater pool has romantic cave-style designs and the spacious gym offers spin classes. The hotel stands out as one of the only all-inclusive options in Funchal (and the best); in addition to the main buffet restaurant with live cooking stations, there are Japanese, Italian, and Madeiran theme restaurants. Bars offer live entertainment. Rooms are modest with simple (but comfy) design and all have full or partial sea views from balconies; some suites have kitchens. The Melia Madeira Mare Resort & Spa offers more modern rooms, but doesn’t have all-inclusive rates.

The Residence
Rua Leichlingen 7

Travelers are drawn to this mid-range, 99-room hotel for two key reasons: the beautiful sea-facing gardens and the warm, comfortable atmosphere. Together with the Suite Hotel Eden Mare and Porto Mare Hotel, The Residence belongs to the Vila Porto Mare resort. The relaxed vibe and non-city center location appeals to more mature couples, and the high number of time-share holders and returning guests gives it a communal vibe. Facilities across the development include four restaurants and a spa. There’s no pool at The Residence itself but it shares use of the resort’s four pools. Spacious studios and apartments all have kitchenettes, plus direct access to the gardens or a sea view. For a slightly chicer stay in a similar setting, the Melia Madeira Mare Resort & Spa has comparable rates.