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10 Best Boutique Hotels On Madeira Island, Portugal

10 Best Boutique Hotels On Madeira Island, Portugal

Madeira Island is renowned for its mind-blowing landscapes, thrilling outdoor adventures, and rich culture. This lush island is considered one of Europe’s stunning travel destinations with tourists returning year after year. There are many huge resorts and luxury villas available on the island, but the best stays are at the smaller, more intimate boutique hotels on Madeira.

My personal favorites are Castanheiro Boutique Hotel for its excellent location and stunning rooftop pools and Estalagem Da Ponta Do Sol for its ocean views.


Boutique hotels are some of the best places to stay when traveling. Every element of your stay is thoroughly considered to provide you with a remarkable experience. They offer great amenities that come with a unique style and beautiful decor but with a more reasonable price range.

If you are considering staying in Funchal (the Capital), it has more options when it comes to boutique accommodation although there are also a few incredible boutique hotels in other regions as you will see below.

I’ve written a separate article discussing the benefits of each different region on Madeira and you can read that here: WHERE TO STAY ON MADEIRA ISLAND: WHICH REGION IS BEST FOR YOU


Dazkarizeh73****Ribeira Brava
Castanheiro Boutique Hotel****Funchal
Albatroz Beach & Yacht Club*****Santa Cruz
Aqua Natura Madeira****Porto Muniz
Estalagem Da Ponta Do Sol****Ponta Do Sol
ARTS IN Hotel Conde Carvalhal****Funchal
Casa Velha do Palheiro*****Funchal
Quintinha Sao Joao Hotel & Spa*****Funchal
Se Boutique Hotel****Funchal
Quinta da Penha de Franca****Funchal


In this article, I’ve compiled a list of 10 boutique hotels on Madeira Island, allowing you to explore this stunning island in style. Here’s my personal recommendation of the top 10 best boutique hotels on Madeira Island comparing location, ratings, and price.


Dazkarizeh73 (Great Atmosphere): Dazkarizeh73 is for visitors looking to get away from it all in a Zen-like atmosphere. Located at Ribeira Brava, which is between Funchal and Ponta Do Sol, this quaint and charming accommodation is your home away from home. The amenities are out of the ordinary on Madeira.

Expect a Bali-like atmosphere with beautiful views of the ocean and sunset. The rooms are clean and stylish with beautiful floral patterns and fitted with complete amenities including a hot tub. The property has a kitchen if you want to cook your own meal.

There is nothing better than sipping your cocktail in an outdoor jacuzzi while enjoying the stunning sunset view. If you are searching for a peaceful and relaxing place, I cannot recommend Dazkarizeh73 enough. There is a reason why it is at the top of my list of the best boutique hotels in Madeira!

Click Here to check the current rates and availability for Dazkarizeh73

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  • Great Atmosphere
  • Charming Accommodation
  • Outdoor Jacuzzi



Castanheiro Boutique Hotel (Excellent Location): Strategically located in the heart of Funchal and within proximity to the historical center and restaurants, Castanheiro Boutique Hotel boasts 81 swanky rooms and a stunning rooftop pool overlooking the picturesque Funchal bay.

The rooms are immaculately clean and stylish with pastel tones and equipped with a flat-screen TV, and coffee/tea-making facilities and some rooms come with balconies and kitchenettes. Here you’ll find everything you need from a fitness center, library, sauna, and business corner, to a hairdresser.

Click Here to check the current rates and availability for Castanheiro Boutique Hotel

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Castanheiro Boutique Hotel

  • Excellent Location
  • Stunning Rooftop Pool
  • Balconies and Kitchenettes


Albatroz Beach & Yacht Club (Luxury): Albatroz Beach & Yacht Club offers you a five-star stay. It is a pretty boutique hotel set in a perfect position to explore all attractions Santa Cruz has to offer. The hotel offers a free shuttle from and to the airport. Boasting 20 gorgeous and classy rooms with sweeping views of the ocean, this luxury boutique hotel is perfect for families and couples.

Each room is incredibly comfortable and equipped with luxurious amenities. The property features a garden, gym, library, spa, sauna, and three swimming pools including the one that proudly sits on the water. The service is impeccable and you will enjoy every touch in this hotel. In addition to Albatroz’s high-end amenities, they also serve delicious buffet breakfast at the restaurant on-site. This is one of the top luxury boutique hotels on Madeira Island. 

Click Here to check the current rates and availability for Albatroz Beach & Yacht Club

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Albatroz Beach & Yacht Club

  • Delicious Buffet Breakfast
  • Perfect Location
  • Luxury


Aqua Natura Madeira (Rock Pool): Along the scenic coast of Porto Moniz lies a beautiful boutique hotel called Aqua Natura Madeira. This 4-star hotel is perfect for all sorts of travelers including families or couples traveling with pets.

It has 3 suites, 7 double rooms, 12 twin rooms, and 3 single rooms. All of the rooms are modern, extensive, and well-equipped with amazing views of the ocean. Aqua Natura Madeira offers customized service from room service, daily housekeeping to special diet menu requests.

The various kinds of leisure activities, splendid views of the mountains and Atlantic, the solarium, sauna, gym, diving center, restaurant, and bar are among the things you can benefit from if you stay here. The huge rock pool is just moments away and probably every guest’s favorite.

Click Here to check the current rates and availability for Aqua Natura Madeira

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Aqua Natura Madeira

  • Rock Pool
  • Amazing Views of the Ocean
  • Leisure Activities


Estalagem Da Ponta Do Sol (Excellent Location): I stayed here! If breathtaking ocean views, comfort, and professional service are your top priorities in choosing accommodation, then stay in Estalagem Da Ponta Do Sol. Set atop a cliff facing the Atlantic Ocean, this trendy boutique hotel is quite a stunning retreat offering plenty of sunshine.

It offers minimalistic-style rooms outfitted with comfy beds, flat-screen TV, floor-to-ceiling windows, and balconies. What I loved the most was the incredible outdoor infinity pool, and hot tub overlooking the sea and the town of Ponta do Sol.

There is a spa and wellness center on-site where guests get to pamper themselves and a tennis court just a stone’s throw away from the property. Apart from that, pets are allowed, parking is free, and there’s Wi-Fi everywhere. This hotel is highly recommended and is one of the most unique, luxurious boutique hotels on Madeira Island.

Click Here to check the current rates and availability for Estalagem Da Ponta Do Sol

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Estalagem Da Ponta Do Sol

  • Excellent Location
  • Ocean Views
  • Luxurious


ARTS In Hotel Conde Carvalhal (Value for Money): Formerly known as Molhe Hotel Conde Carvalhal, this unique and affordable boutique hotel is used to be a traditional Madeiran house. Strategically located near the old town and surrounded by beautiful lush gardens, ARTS In Hotel Conde Carvalhal is the perfect place if you don’t want to be in the middle of the crowd yet not too far from everything.

The rooms are fitted with sleek marble bathrooms, a kitchen, and a furnished balcony with gorgeous views. The atmosphere is very cozy and homey not to mention the incredible hotel staff will treat you like a family.

Click Here to check the current rates and availability for ARTS In Hotel Conde Carvalhal

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ARTS In Hotel Conde Carvalhal

  • Value for Money
  • Affordable
  • Cozy Atmosphere


Casa Velha do Palheiro (Tranquility): The position of this boutique hotel is faultless: high above the city of Funchal, with vast magical views of Palheiro Golf and the stunning gardens that stretch as far as the eyes can see. With 38 fabulous rooms and suites–all equipped with luxurious amenities, Casa Velha do Palheiro never feels busy or crowded.

With smooth carpeted floors and whitewashed walls offsetting vintage furniture and unconventional touches, every last corner of each room is superbly stylish. But my favorite thing is the tea house which is beside the hotel and Palheiro Golf which is very handy. Recharge and rejuvenate yourself at the Spa on-site where you can enjoy various kinds of massage and beauty treatments. There are two restaurants, a state-of-the-art gym, and a sauna. This is by far one of the best boutique hotels on Madeira Island. 

Click Here to check the current rates and availability for Casa Velha do Palheiro

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Casa Velha do Palheiro

  • Tranquility
  • Magical Views
  • Luxury


Quintinha Sao Joao Hotel & Spa (Luxury): Take your travel up a notch and stay at one of Quintinha Sao Joao Hotel & Spa’s 42 rooms. While all rooms are equipped with everything you could possibly need, some of them have furnished balconies offering garden views.

This luxury boutique hotel is appealing year-round, thanks to its stunning garden as well as its top-notch amenities, from elegant rooms to the spa and wellness center. From the moment you arrive here, you’ll feel like you’re being treated to a customized experience as the staff is well-trained in what they do. Enjoy yourself in one of their swimming pools and chill with a glass of cocktail or wine in hand. It is also pet-friendly and a complimentary delicious breakfast is served daily.

Click Here to check the current rates and availability for Quintinha Sao Joao Hotel & Spa

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Quintinha Sao Joao Hotel & Spa

  • Furnished Balcony
  • Stunning Garden
  • Luxury


Se Boutique Hotel (Excellent Service): Set in the heart of Funchal and just a stone’s throws away from the Cathedral, this 4-star boutique hotel features 54 rooms with modern and quirky decor. This lovely hotel prides itself on its excellent hospitality and service not to mention the rate is more reasonable compared to other boutique hotels on Madiera Island.

The best feature of this hotel is probably the lovely rooftop bar with a panoramic view and colorful touches making it a perfect place to enjoy your tea or chill. While the property has a garden, art gallery, and massage service, there are other activities to enjoy such as wine tasting, classic car tours, picnics, and more.

Click Here to check the current rates and availability for Se Boutique Hotel

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Se Boutique Hotel

  • Excellent Service
  • Reasonable Rates
  • Rooftop Bar


Quinta da Penha de Franca (Great Value for Money): Enjoy all the posh amenities and convenience with attention to detail of a boutique hotel at Quinta da Penha de Franca. It boasts 109 rooms all fitted with amenities such as air conditioning, a private bathroom with free toiletries, a wardrobe, a tea/coffee maker, comfy chairs, and more.

While this boutique hotel features a massage spa, garden, restaurant, and bar, the highlight is probably the salt-water swimming pool overlooking the Atlantic Ocean. There is also free parking as well as balconies in some rooms with scenic ocean views. The hotel provides access to the sea and it is moments away from all the shops and restaurants. Guests will have free breakfast considering its reasonable rate and they will not get bored here as they can play billiards for fun on-site.

Click Here to check the current rates and availability for Quinta da Penha de Franca

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Quinta da Penha de Franca

  • Great Value for Money
  • Massage Spa
  • Scenic Ocean Views

That’s it! I have shared with you the top 10 Boutique Hotels on Madeira Island. I hope this article will help you organize your booking accommodation for your upcoming trip to Madeira Island. Enjoy your vacation!


Throughout my six months on Madeira Island, 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.

an aerial view of a pool and a beach.


a view of a swimming pool and a city.
a large swimming pool next to the ocean.


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.


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Sunday 10th of July 2022

Dear sir, l am Razib working in UAE dubai pastry chef. I have 14 years experience in pastry chef in hotels and restaurants. So now l am looking for pastry chef job please help me.

Marjan Sadeghi

Monday 8th of March 2021

When did you stop being that backpacker who sleeps for less than 6 EUR per night?


Tuesday 9th of March 2021

Still travel mostly like that. I also use Airbnb credits and do sponsored stays every now and again :) This is just a guide I wrote summarizing the top boutique hotels on Madeira. Clearly, I didn't stay at all ten of them, it's just my summary of the options available to help people choose.