Hotels in old town Funchal Madeira Portugal

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Visitors who want to step out of the door into the old streets of Funchal soon find few hotels in them. The Zona Velha is a quarter of narrow lanes, low houses and restaurants, and the hotels in old town Funchal Madeira Portugal has are mostly flats, guest houses and one hostel, with a few hotels on the edges.

Within 600 m of Rua de Santa Maria, the old town's main street, 37 places to stay score 7.0 or more, and only 4 of them are hotels. Their median score is high, 9.1, and on a sample search for two adults, two nights from 10 to 12 October 2026, their median price was about €394. Prices move with the dates.

The most reviewed hotel close to it is the Madeira TURIM Santa Maria, a four-star with a rooftop pool, 8.9 from 2,251 reviews, for about €671.

What the old town is like

The common mistake is to book the old town for a quiet stay. It is the busiest part of the city in the evening.

The Zona Velha lies at the eastern end of the seafront, around Rua de Santa Maria, which is cobbled and lined with old houses; about 200 of its doors have been painted by artists. Within 450 m of the street are 96 restaurants, and they fill in the evening.

The yellow Forte de São Tiago stands at its eastern end, built in the 17th century against pirate attacks and listed as temporarily closed. Below it, the Praia de São Tiago is an outdoor sea pool, open daily from 09:00 to 20:00, and further east the Praia da Barreirinha carries a Blue Flag on the 2026 list.

At its western edge, the cable car climbs to Monte, €16 one way and €22 return, and the Mercado dos Lavradores, opened in 1940, sells the island's fruit and fish.

For a stay, that means the sea, the market, the cable car and dinner on foot, and noise until late in the lanes nearest the restaurants.

The old town's lanes hold the densest run of restaurants in the city.

The hotels

Visitors often expect a row of hotels by the old town. There are four within 600 m, all on its edges.

The Madeira TURIM Santa Maria, on Rua João de Deus, 475 m from the middle of Rua de Santa Maria, is a four-star with family rooms, a rooftop pool, a terrace, a restaurant and a bar, 8.9 from 2,251 reviews for about €671 for the two nights.

The ARTS IN Hotel Conde Carvalhal, a restored Madeiran mansion to the east, 475 m from the middle of the street in a straight line, has botanical gardens with views of the sea, the city and the mountains, and free covered parking, 8.7 from 895 for about €383.

The Editory Garden Carmo, a three-star on the Travessa do Rego close to the cathedral and the old town, has a rooftop pool, 8.6 from 185 for about €348. The Hotel Windsor, a four-star on Rua das Hortas, has a rooftop pool, 7.1 from 239 for about €272.

Just outside the 600 m, the Barceló Funchal Oldtown, a five-star on Rua da Alfândega with a rooftop pool, scores 9.0 from 1,868 reviews for about €584, and the Sé Boutique Hotel, by the cathedral, 8.8 from 981 for about €469.

Apartments in the old town

People often think a flat in the old town means a walk-up with no view. Some have a rooftop pool and sea views.

Apartments Madeira Barreirinha, 384 m from the middle of the street, has a rooftop pool, sea views, a kitchenette and free on-site parking, 9.4 from 299 reviews for about €422. Apartments Madeira Old Town, at the eastern edge, scores 9.1 from 253 for about €359.

Closer in, Apartamentos Santa Maria by Heart of Funchal, 237 m from the middle of the street, scores 9.2 from 180 for about €333, and Casa do Mercado, 162 m away, 9.2 from 161 for about €308. Apartments Madeira Santa Maria, 39 m from it, scores 9.2 from 131 for about €413.

Travellers Pearl by Storytellers, 118 m away, has 985 reviews at 8.4, for about €290, and Welcome Madeira Apartments 9.1 from 155.

Nearer the market and the centre, Living Funchal iNN, on Rua do Carmo, has 1,029 reviews at 8.8 for about €306, and The Marketplace by Storytellers, on Rua Fernão de Ornelas, 781 at 8.5 for about €305.

A flat here puts the market at the door: the Mercado dos Lavradores opens Monday to Friday from 07:00 to 19:00 and Saturday from 07:00 to 14:00, on the municipality's market page.

The hostel and the guest houses

The mistake is to assume the cheapest bed is far from the old town. The hostel is on its main street.

The Santa Maria Hostel, at number 145 on Rua de Santa Maria, 77 m from the middle of the street, has family rooms with private bathrooms, a shared kitchen, a lounge and a terrace, 8.4 from 933 reviews for about €193 for the two nights.

Funchal 19, a guest house on Rua Hospital Velho, 327 m away, scores 7.3 from 654 for about €187. Rochinha Cozy Home, in Santa Maria above the old town, scores 9.1 from 195 for about €202, and Sea House, on Rua Conde Carvalhal to the east, 7.8 from 245 for about €147.

For the lowest price in the area, Center Funchal - Atlantic View Stay, a flat 81 m from the middle of the street, cost about €145 at 7.3.

At the budget end, check the noise: the rooms on Rua de Santa Maria look onto a lane that is busy at night.

Choosing

Visitors often choose the old town for the photographs and the centre for the sleep. Both are a few minutes apart.

For the evenings and the sea pools, stay in the old town itself, on or near Rua de Santa Maria: the restaurants, the São Tiago sea pool, the Barreirinha beach and the cable car are at the door.

For quiet with the old town on foot, stay on its edges or in the centre next to it: the TURIM Santa Maria, the ARTS IN Hotel Conde Carvalhal and the flats above the old town in Santa Maria, or the hotels around the cathedral, 600 to 800 m west.

For a car, choose a place with parking: Apartments Madeira Barreirinha and the ARTS IN Hotel Conde Carvalhal list it, and the lanes of the old town are narrow.

And for a pool, the rooftop pools of the TURIM Santa Maria, Barreirinha, the Editory Garden Carmo and the Barceló Oldtown are the nearest.

The old town guide covers the streets and the food, and the where-to-stay guide compares it with the other areas.

Common questions

Are there hotels in Funchal's old town?

Four within 600 m of Rua de Santa Maria, all on its edges, led by the TURIM Santa Maria; most stays in the old town are flats and guest houses.

Is the old town of Funchal noisy at night?

The lanes nearest the 96 restaurants around Rua de Santa Maria are busy until late; the edges and the flats above it are quieter.

Is there parking in Funchal's old town?

Apartments Madeira Barreirinha and the ARTS IN Hotel Conde Carvalhal list parking; the lanes of the old town are narrow, so ask before you book.