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Madeira Island is a stunning island in Portugal rich in culture, history, and geography. The island provides a plethora of outdoor activities or adventures to visitors all year round, especially those looking for warmer weather! From its awe-inspiring landscapes, stunning rock pools, and scenic levada walks, you’ll be surprised by the beautiful moments this small island offers. The pleasant climate (eternal spring) makes it a great travel destination for travelers. In this blog post, I will share with you my personal recommendations of the best 5-star luxury hotels on Madeira Island, Portugal.

When it comes to finding luxury accommodation, there are a range of 5-star hotels in Funchal, which is the capital of Madeira. Funchal is a perfect base whether you want to explore the entire island or be in the center of the action. From luxury manor houses in the middle of the lush garden and vegetation to large hotels perched on hills and cliffs, rest assured Madeira has plenty of ritzy hotels for you to choose from. In this article, I’ve rounded up the best 5-star hotels on Madeira Island, including the best places to stay for first-rate amenities, astounding views, stylish suites, cozy atmosphere, Michelin-starred restaurants, and great location. There’s also one special 5-star luxury hotel that isn’t in Funchal so watch out for that one!

Here is the table comparing my personal recommendations on the best 5-star hotels on Madeira Island.


Les Suites at Cliff Bay PortoBaySao Martinho, FunchalExceptional$454
Quinta Jardins Do LagoSao Pedro, Funchal9.6- Exceptional$208
Quinta Da Casa BrancaSao Martinho, Funchal9.6- Exceptional$218
Belmond Reid’s PalaceSao Martinho, Funchal9.5- Exceptional$355
Albatroz Beach & Yacht ClubSanta Cruz9.4- Superb$213
The Cliff Bay- PortoBaySao Martinho, Funchal9.4- Superb$214
Casa Velha do PalheiroSao Guncalo, Funchal9.1- Superb$236
Quintinha Sao Joao Hotel & SpaSan Pedro, Funchal9.1- Superb$208
The Vine HotelSe, Funchal9.0- Superb$189
Royal Savoy PalaceSe, Funchal9.0- Superb$258

Les Suites at Cliff Bay PortoBay (Luxury): Perched on a cliff, Les Suites is best known for its jaw-dropping setting. It houses 23 sophisticated and sleek suites with balconies offering panoramic views of the ocean. Each room is fitted with a bathtub and comfy couches. This 5-star resort on Madeira has three bars and restaurants including one with two Michelin stars that serve delectable food and beverages. This is a kind of high-end hotel on Madeira that most travelers would fantasize about with a heated outdoor pool on the edge of the cliff making it a perfect spot to relax and chill out. Other amenities include a gym, pilates room, lounges, wellness center, library, cinema room, and more. The resort offers a golf course, tennis, and sailing in a luxury yacht. With its first-class amenities and service guaranteed, you’ll receive a 5-star experience with Les Suites at Cliff Bay PortoBay, which is one of the top luxury 5-star hotels on Madeira.

Click Here to check the best current rates and availability of Les Suites at Cliff Bay PortoBay.

Quinta Jardins Do Lago (Cozy Atmosphere): This charming 18th-century manor house is situated in a beautiful setting in the middle of a lush botanical garden. It features spacious, elegant rooms and suites that come with a seating area, a cable TV with an internet connection, a minibar, a private bathroom, and a balcony. Rooms are also very cozy, the food is fabulous, and the hotel staff is very welcoming and accommodating. Apart from all the fancy experience, the hotel also offers free parking, Wi-Fi, and an airport shuttle. What’s more? Guests can dine by the gardens or by the pool area. Despite being central, the property is still quiet and away from the noise of Funchal. It has a nice and relaxing atmosphere. With its top-notch service and stunning gardens, Quinta Jardins Do Lago is hard to miss in Funchal. 

Click Here to check the best current rates and availability of Quinta Jardins Do Lago.

Quinta da Casa Branca (Luxury): Quinta da Casa Branca is a one-of-a-kind luxury boutique hotel in Funchal and probably a history buff’s ideal place. It is not trendy and chic but once you stay here, there may be no reason to leave. It offers a huge, beautiful garden and rooms like no other with so much history. You will sleep like a king or queen in the manor house suite. Yes, each manor house comes with a marble bathroom fitted with a bath, balcony with a garden view, coffee/tea making facilities, free Wi-Fi, classic-style decor, and a huge bed with an adjoining seating area. What can you ask for? Other room types include garden rooms, premium rooms, and deluxe suites. The place is tranquil and the grounds are so pretty. There are two heated swimming pools, wellness facilities, two restaurants, a bar, and complimentary parking on-site. The breakfast on the terrace is quite amazing and the staff is fantastic. If you want a peaceful atmosphere and luxury place to stay while in Funchal, I truly recommend this luxury hotel on Madeira!

Click here to check the best current rates and availability of Quinta da Casa Branca.

Belmond Reid’s Palace (Luxury): This historic five-star hotel is set atop a cliff with insane Atlantic Ocean views. Built-in 1891, this luxury haven is well-known because of its timeless elegance, century-old gardens, and beauty that even Winston Churchill had stayed here before. It offers classic and refined rooms with modern amenities yet keeping the hotel’s traditional interior design and charm. Amenities comprise outdoor swimming pools, four restaurants with one Michelin star, bar, spa, and wellness center, tennis court, and more. There is complimentary breakfast, parking, and Wi-Fi. What’s unique about this hotel is the elevator that takes guests down to sea level where they can find a pool built on the rock. Belmond Reid’s Palace is renowned for its world-class service, insane views, traditional English afternoon tea, and sumptuous cuisines. Undoubtedly, the best luxury hotel in Funchal and probably the top overall place to stay on Mdaeira Island.

Click here to check the best current rates and availability of Belmond Reid’s Palace.

Albatroz Beach & Yacht Club (Luxury): This is by far the best luxury boutique hotel in Santa Cruz. Albatroz Beach & Yacht Club is strategically located on a promontory with private beach access. It offers a wide range of luxurious rooms and suites with balconies offering the best Atlantic Ocean view. The hotel rooms are enormous and fitted with Wi-Fi, tea, and coffee making facilities, an ensuite bathroom with a double sink, and more. The suite has a separate dining room. It has a tennis court, a library, restaurant & bar, gym, a garden, and gorgeous swimming pools by the sea and on the rocks. The hotel’s location steals the show as it’s within proximity to the airport and guests can take advantage of their free shuttle service. With professional service and top-notch amenities, this luxury hotel on Madeira Island really does have everything you could possibly need and is one of the top 5-star hotels on Madeira.

Click Here to check the best current rates and availability of Albatroz Beach & Yacht Club.

The Cliff Bay- PortoBay (Luxury): The Cliff Bay- PortoBay is a ritzy hotel set on a cliff in Funchal, offering a stunning 360-degree view and direct access to the sea. This five-star hotel has achingly stylish rooms and suites, all fitted with complete amenities such as large comfy beds, seating area, air conditioning,  and more. The property houses two Michelin-starred restaurant serving Mediterranean and Iberian cuisines, not to mention the bar, spa with 8 rooms for treatments, Turkish steam bath, jacuzzi, sauna, modern fitness center, and three swimming pools. If you are a tea lover, the hotel has one of the best English afternoon teas serving home-made scones and mini-sandwiches. Whether you’re looking out from the peninsula suite or just swimming in the hotel infinity pool, this stunning hotel offers abundant opportunities for photographic moments. The Cliff Bay draws mostly couples and families that are looking to disconnect from the bustling noise of the metropolis yet still stay in a 5-star Funchal hotel with a good location.

Click Here to check the best current rates and availability of The Cliff Bay- PortoBay.

Casa Velha do Palheiro (Quiet Location): Another 5-star hotel on Madeira Island is Casa Velha do Palheiro set in the rolling hills of Funchal. Make yourself at home in one of the finest air-conditioned rooms and suites featuring floral-patterned bed cover and classic wooden furnishings. All guestrooms are fitted with en-suite bathroom while the senior suites and superior rooms have separate shower cabins. This luxury manor hotel houses an award-winning restaurant that serves exquisite and high-quality food to their guests. Golf enthusiasts will also love to book at this hotel as the 18-hole, par 72 championship golf course is within proximity. Other activities include Palheiro nature trails, hiking, fishing and cruising, playing tennis, and more. Casa Velha do Palheiro is all about serenity and comfort so I definitely recommend this luxury haven.

Click Here to check the best current rates and availability of Casa Velha do Palheiro.

Quintinha Sao Joao Hotel & Spa (Tranquility): This luxury hotel is a mixture of old and modern with so much history and a strong emphasis on comfort. Situated in Funchal, Quintinha Sao Joao Hotel & Spa is a stunning 5-star hotel featuring 42 vintage yet fancy rooms. The rooms and suites are spacious and perfectly splendid with pastel tones, beautiful wooden furniture. There is free Wi-Fi, heated indoor and outdoor swimming pools, peaceful sitting areas, a fitness center, spa, game room, restaurant, and a bar. I love the character of the hotel and the attention to detail is extraordinary. If you want to do some excursions or activities, the staff can assist you with that. The best part is the food and wine. Yes, this luxury haven has the best dining and wine tasting experience. Guests can also take advantage of their room service or have lunch by the terrace while enjoying a quiet and relaxed atmosphere. 

Click Here to check the best current rates and availability of Quintinha Sao Joao Hotel & Spa.

The Vine Hotel (Luxury): If you are looking for a luxury place to celebrate your honeymoon or anniversary, The Vine Hotel is your perfect pick. Yes, the hotel design was inspired by the richness of a full-blooded wine just like what the island is famous for— WINE. This inexpensive yet ultra-chic luxury hotel is super modern and has some amazing spa facilities. The hotel has plenty of rooms and suite options but if you want a room with an extra-large double bed and a fancy bathtub, you might want to book the Design Panoramic Suite. Overall, all rooms are beautifully designed, extensive, and some may even have floor-to-ceiling windows that allow for stunning views and provide plenty of opportunities to take pictures for your Instagram. When it comes to food, the hotel has a fusion restaurant and bar that serve exquisite food and drinks. Couples can book a table by the pool for romantic private dining. For a romantic getaway with your loved one, I highly recommend this luxury 5-star hotel in Funchal!

Click here to check the best current rates and availability of The Vine Hotel.

Royal Savoy (Family/Couple Choice): Boasting panoramic views of Funchal city, Royal Savoy takes pride in its wide range of modern facilities, exclusive service, and high-quality food. This brand-new, chic, and quirky hotel is suitable for families and couples. It also offers a wide selection of room types from double rooms, apartment with the sea view to suites– all beautifully furnished in quality, style, and comfort. Some suites have a private pool and premium experience. The rooms are large, classy, and cozy with complete amenities. Indulge your stay at Royal Savoy by having a massage at the spa, or drink a glass of cocktail at the rooftop pool while enjoying the stunning views of Funchal. The hotel also houses a solarium and steam room, gym, sauna, and complimentary Wi-Fi. If you are a pool lover, I bet you would love to stay here as they have a stunning outdoor lagoon-style pool.

Click Here to check the best current rates and availability of Royal Savoy.

I hope this guide helped you choose where to stay on Madeira Island. There’s some truly epic luxury 5-star hotels in Madeira and some of the resorts have incredible locations. I’m sure you will have a great stay at your accommodation on Madeira Island.


I spent six months exploring Madeira and the nearby island of Porto Santo. These are some of my most popular guides about the region that you may be interested in.


The best waterfalls on the island: 25 EPIC WATERFALLS ON MADEIRA

My favorite levada walks: 25 BEAUTIFUL LEVADA WALKS ON MADEIRA


Longest hike on Madeira: CAMINHO REAL 23: MADEIRA’S ROYAL PATH (180KM)


I created 20 adventure travel videos while on Madeira and some of them were from never-before filmed locations. From hiking in a snowstorm to running on coastal ridges, it’s a playlist of videos you will enjoy. I’ve linked the entire playlist of my Madeira videos below.


Throughout my six months on Madeira, I stayed in multiple accommodations. My favorite regions to stay in were Funchal and Canico de Baixo. I’ve created several guides to help you find the right region for you and a great hotel or apartment.




If you want to base in Funchal: WHERE TO STAY IN FUNCHAL: 15 TOP-RATED HOTELS

If you are staying for a week or more, you should check out this list of the BEST Airbnb accommodations in Madeira by clicking here.