Where to stay in Funchal
Funchal is a long, steep city on a slope above the sea, and the slope decides where you should sleep. For a first visit, stay in the center or in Zona Velha, the old town, where the market, the cathedral and the cable car are close and the ground is flattest. The hotel zone and Lido are for sea-water pools and terraces, a bus or taxi ride from town. Monte is for gardens and cool air, high above everything. Check the gradient between your hotel and the places you plan to eat before you book.
The short answer
- First trip
- The center or Zona Velha: the market, the old town and the cable car are all close.
- Pools and sea views
- The hotel zone or Lido, on the cliffs west of town, with sea-water pools.
- Quiet and green
- Monte, above the city, with gardens and cooler air.
- Bad knees or luggage
- The center or Avenida Arriaga, on the flattest ground and a short taxi from the bus stops.
- Beach and shopping
- São Martinho and Formosa, at the western end, with a pebble beach and a shopping center.
How we judge an area of Funchal: walking time to the sights, how steep the way back is, noise at night, transport, and price. Nothing on this page is paid for, and the hotels we choose will say who chose them and when they last stayed.
Funchal's neighborhoods, side by side
| Area | Best for | At night | Sé Cathedral | Mercado dos Lavradores | Marina | Getting around | Price |
|---|---|---|---|---|---|---|---|
| The center | A first visit | Quiet after the shops close | 5 min | 5 min | 10 min | On foot; buses, taxis | €€€ |
| Zona Velha, the old town | Evenings, the cable car | Lively on Rua de Santa Maria | 10 min | 5 min | 15 min | On foot; cable car | €€ |
| Avenida Arriaga and the marina | Flat ground, harbor views | Quieter than the old town | 5 min | 10 min | 5 min | On foot; buses on the avenue | €€€ |
| The hotel zone | Resorts, sea views | Quiet | 25 min | 30 min | 20 min | Taxis and buses; no walking to town | €€€€ |
| Lido | Swimming, sea views | Quiet | 40 min | 45 min | 35 min | Buses and taxis; promenade to town | €€€ |
| São Martinho and Formosa | Lower prices, the beach | Quiet | over an hour | over an hour | 60 min | Buses and taxis to the center | €€ |
| Monte | Gardens, quiet | Very quiet | 45 min | 45 min | 50 min | Cable car, bus, taxi | €€ |
Walking times run from the middle of each area: the straight line plus a third for real streets, at an easy pace, rounded to five minutes. Funchal climbs steeply, so the real walk uphill is harder than the minutes suggest, and Monte sits about 550 meters above the sea. Price is our read of a standard double in the same week, from € (cheapest) to €€€€ (dearest), until booking-site prices replace it.
Where the neighborhoods are
The center, for a first visit
The cathedral, the market and the old town within a short, mostly flat walk.
The center sits around the cathedral and the Praça do Município, a few minutes from the sea. The Mercado dos Lavradores is about five minutes away, Zona Velha about ten, and the marina and the cable car are close. This is the least steep base in Funchal, and the place that saves the most climbing.
It is busy by day with day-trippers from the cruise ships, and quiet in the evening once the shops close. A few streets near the old town are noisy at night. Hotels range from small guesthouses to larger four-star places, so you can pay less than at the seafront resorts. Ask for a room above the street level if your window faces a restaurant street.
Good for
- A first visit of two to four nights
- Walking to the market, the cathedral and Zona Velha
- Buses, taxis and the cable car close by
Think twice if
- You want a pool and a sea view at the hotel
- You want the quiet of a garden or a hillside
Staying in The center: nearby sights, food and getting around
Zona Velha, for evenings in the old town
The oldest streets, the restaurants of Rua de Santa Maria and the cable car, on flat ground by the water.
Zona Velha is the old town at the eastern end of the waterfront: narrow streets, painted doors, small restaurants and the lower station of the cable car to Monte. The Mercado dos Lavradores is about five minutes away, and the cathedral about ten. Most of it is flat, but the ground rises quickly behind it.
It is lively at dinner, with restaurants out on the street and some staff calling people in, and it stays busy until late on weekends. Rooms here are mid-range and often small, in converted old buildings, with fewer large hotels than in the center. Ask for a room at the back if you sleep lightly.
Good for
- Dinner and a walk without a taxi
- The cable car to Monte from the door
- Old streets and the market on foot
Think twice if
- You sleep lightly and your room faces a restaurant street
- You want a pool or a large hotel with facilities
Staying in Zona Velha, the old town: nearby sights, food and getting around
Avenida Arriaga and the marina, for flat ground
The city's main avenue, the municipal garden and the marina, a short walk from the cathedral and the market.
Avenida Arriaga is the wide avenue behind the marina, with the municipal garden, wine lodges, shops and cafes. The cathedral is about five minutes away, the market about ten, and the marina where the boat trips leave is next door. It is flat, and a good base for anyone who wants to avoid hills.
It is a working part of town as much as a tourist one, with traffic on the avenue and a fair amount of noise by day. At night it is quieter than Zona Velha. Hotels here are mostly four-star and above, and some have rooftop pools and views of the harbor.
Good for
- Flat walking and easy taxis
- Boat trips, wine lodges and the garden close by
- Rooftop pools and harbor views
Think twice if
- You want the old-town restaurant streets outside the door
- You are on a tight budget
Staying in Avenida Arriaga and the marina: nearby sights, food and getting around
The hotel zone, for resorts and sea views
Large hotels on the cliffs west of the center, with terraces, pools and the sea below.
The hotel zone runs along the Estrada Monumental, the coast road west of the center, with big resort hotels on the cliff edge above the sea. Most have pools, terraces, spas and restaurants, and views over the Atlantic. The center is about 35 to 45 minutes on foot, but the road is long and the walk back is uphill.
It is a place to stay at the hotel as much as in the city. You will use taxis and buses for dinner in town and for the old town, and the last bus is earlier than the restaurants close. The area itself is quiet at night, with few shops, and rooms are the most expensive in Funchal.
Good for
- Pools, terraces and sea views
- A resort stay with a few trips into town
- Quiet nights
Think twice if
- You want to walk to restaurants and the old town
- You are on a budget
- Hills and a late return are hard for you
Staying in The hotel zone: nearby sights, food and getting around
Lido, for sea-water swimming
A seafront stretch of hotels and public pools, about three kilometers from the center.
Lido is the stretch of coast beyond the hotel zone, with sea-water swimming pools, a promenade and a line of hotels and apartments. It is the closest Funchal comes to a beach resort, though the shore is rocky and the pools are the main place to swim. A promenade runs back toward the center.
The center is about 45 minutes on foot or 10 to 15 minutes by taxi, and the way back to Lido is uphill in places. The restaurants are mostly hotel ones and a few by the water. The area is quiet after dark and less convenient for evenings in the old town.
Good for
- Swimming in the sea-water pools
- A seaside walk on the promenade
- A resort stay with a view
Think twice if
- You want to walk to the old town
- You depend on buses late at night
São Martinho and Formosa, for the western end
A residential west end of Funchal, with a pebble beach, a shopping center and lower prices.
São Martinho and Praia Formosa form the western end of the city: residential streets, a pebble beach at Formosa, and the Forum Madeira shopping center. The center is about 5 kilometers away, so most visitors take a bus or taxi.
It suits people who want prices below the hotel zone and a local feel, with beach access and shops close. It does not suit anyone who wants to walk to the old town or the market. The beach is pebbly and open to the Atlantic, so check the sea conditions before swimming.
Good for
- Lower prices and a local feel
- A pebble beach and shops close
- Buses along the coast to the center
Think twice if
- You want to walk to the old town
- You want the sights outside your door
Staying in São Martinho and Formosa: nearby sights, food and getting around
Monte, for gardens and cooler air
A hill village high above the city, with gardens, a church and views back down to the sea.
Monte is a hill village about 550 meters above the sea, reached by cable car, bus or taxi. It has the Monte Palace gardens, the church of Nossa Senhora do Monte and views back over the city. The air is cooler and the streets are green, and on a clear day it is a good place to wake up.
It is a long way up from Funchal, and a long way back down after dinner. Restaurants are limited, taxis are the usual way down at night, and cloud sits on the hill more often than at the coast. Stay here for a quiet base and gardens, not for the old town.
Good for
- Quiet nights and cooler air
- The gardens and the church on foot
- Views and green hillsides
Think twice if
- You want to walk to restaurants and the old town
- Cloud and rain on the hill would spoil your trip
- You depend on buses late at night
Where not to stay in Funchal, and what to do instead
Every booking site lists these places to stay in Funchal. We would skip them, or at least choose with care. Nobody pays a commission on a warning.
- A hilltop hotel with views, if hills are hard for you
The views are real, and so is the climb back at the end of the day. Stay in the center, Zona Velha or on Avenida Arriaga, and take a taxi up to the views.
- A room on a restaurant street in Zona Velha, if you sleep lightly
The old town is busy until late, especially on weekends. Ask for a room at the back, or stay a few streets away in the center.
- A resort in the hotel zone, if you want evenings in the old town
It is a taxi ride each way, and the last bus is early. Stay in the center, or accept that you will pay for taxis.
- Monte, without a plan for the evening
It is beautiful by day and quiet at night, with a long ride down. Visit by cable car for the day, and sleep at the coast.
Which neighborhood suits you
First time in Funchal
The center or Zona Velha, for the market, the old town and the cable car.
Couples
The old town for evenings, or the hotel zone for a terrace and a view.
Bad knees or luggage
The center or Avenida Arriaga, on the flattest ground.
Swimming
The Lido pools, or a hotel pool in the hotel zone.
Peace and quiet
Monte, or the hotel zone at night.
Tight budget
São Martinho and Formosa, or a small guesthouse in the old town.
Before you book a room in Funchal
The practical things that decide whether a good hotel in Funchal makes a good stay.
- The tourist taxFunchal charges guests €2 per night for up to seven nights, and children under 12 do not pay. It is usually collected at the hotel. On 1 October 2026 the municipal council unanimously approved a rise to €4 per night, proposed from January 2027 and now in a 30-day public consultation, so check the rate for your dates before you book.
- From Madeira airportCristiano Ronaldo Airport is about 16 km east of the center. The Aerobus (line 1) takes about 30 to 50 minutes and costs about €6.50 one way, and runs roughly from 5:30 to 1:00. A taxi takes about 20 to 30 minutes and costs about €25 to €35. Allow extra time on your return, as strong winds can delay flights.
- Hills and luggageThe center and Zona Velha are mostly flat. Almost everywhere else climbs steeply from the sea. If a hotel is described as a short walk, check the gradient on a map, and ask whether it has a lift and whether a taxi can reach the door.
- The last bus and taxisBuses to the hotel zone, Lido and Monte are slow on the hills, and the last ones run earlier than many restaurants close. Plan to take a taxi back after dinner, and price it into your stay.
- New Year's EveThe fireworks over the bay draw large crowds. Rooms with a view are booked months ahead and cost more, and minimum stays often apply.
- Rain and cloud on the hillsWeather changes between the coast and the mountains. Monte and the high trails can sit in cloud when the city is in sun, so keep a layer in your bag.
Where to stay in Funchal: questions people ask
What is the best area to stay in Funchal for a first visit?
The center or Zona Velha. Both are close to the market, the cathedral and the cable car, and the ground is mostly flat. Choose Zona Velha for evenings out and the center for quieter nights.
Is Funchal hilly?
Yes, very. The center and the old town are mostly flat, but the city climbs steeply from the sea, and Monte is about 550 meters above it. Plan to use taxis or buses for anything uphill, and check the gradient around any hotel before you book.
Should I stay in the hotel zone or the old town?
The old town if you want to walk to restaurants, the market and the cable car. The hotel zone if you want a resort with pools and views and are happy to take a taxi into town in the evening.
Is it better to stay in Funchal or somewhere else on Madeira?
Funchal for most first visits, because it has the most restaurants, the best buses and the airport transfer is simple. Stay elsewhere only if you want a quieter coast or a base for walking, and then you will probably want a car.
Do I need a car in Funchal?
Not for the city. The center is walkable and taxis and buses cover the rest. You only need a car or a tour for the island, and parking in the center is limited.
How do I get from Madeira airport to Funchal?
The Aerobus (line 1) takes about 30 to 50 minutes and costs about €6.50, and a taxi takes about 20 to 30 minutes for roughly €25 to €35. The airport is about 16 km east of the center.
Is there a tourist tax in Funchal?
Yes. It is €2 per person per night for up to seven nights, and children under 12 are exempt. A rise to €4 from January 2027 was approved by the council on 1 October 2026 and is in public consultation, so check the rate when you book.
How many nights should I stay in Funchal?
Two nights cover the city. Four or five let you add Monte, a levada walk, a mountain trip and a boat trip.
