What is the best budget hotel in Funchal?

Quinta Da Penha De Franca (Se): 8.4/10 · 2,832 reviews · €115 / night · Guests say: “Location: Quiet setting by the sea within walking distance of the city centre and restaurants.”

What is the best value hotel in Funchal?

Hotel Cajú (Sao Pedro): 9.2/10 · 807 reviews · €124 / night · Guests say: “Location: Situated on a quiet pedestrian street in the city centre near restaurants and the marina.”

What is the best luxury hotel in Funchal?

Quinta Jardins do Lago (Sao Pedro): 9.7/10 · 538 reviews · €498 / night · Guests say: “Staff: Friendly, professional team provide attentive and welcoming service.”

Where should I stay in Funchal?

Our three picks are in Se, Sao Pedro. Open each hotel on the map to see the neighbourhood before you book.

Are these hotel prices live?

No. They are reference rates for 10–12 Nov 2026, 2 adults and 1 room, checked on Booking.com on October 8, 2026. The booking link shows the current rate for your dates.

Home › Portugal › Funchal

Portugal · 3 · Our pick

The 3 best hotels in Funchal.

One Budget, one Best Value, one Luxury, chosen from 40 hotels Booking.com returned for the same stay. No endless list: pick your style and book.

The 3 best hotels in Funchal, Portugal: Quinta Da Penha De Franca (budget), Hotel Cajú (best value) and Quinta Jardins do Lago (luxury). Sourced guest scores and reference prices.

Selected with the Top3Hotels method · Updated October 8, 2026IndependentNo paid rankings

At a glance

BudgetQuinta Da Penha De Franca8.4/10 · €115 / night Best ValueHotel Cajú9.2/10 · €124 / night LuxuryQuinta Jardins do Lago9.7/10 · €498 / night

Budget

8.4€115 / night

Quinta Da Penha De Franca

★★★★Se

Best forSmart-budget trips · Beach holidays

8.4/10 from 2,832 guest reviews
≈ 18 min walk to Cathedral of Funchal
Chosen from 40 hotels

2,832 Booking.com reviewsLocation 9.4Price checked on Booking.com · 8 Oct 2026

Guests sayLocation: Quiet setting by the sea within walking distance of the city centre and restaurants.

Beachfront
Pets allowed
Family rooms
Free parking
Great breakfast

Reference rate

Check price & availability ↗

We may earn a commission if you book. It never changes our picks.

Sold out? See available alternatives → Read the full review →

Map ↗

Report an error

Why this Budget pick

Guest feedback: 8.4/10 from 2,832 guest reviews; review-score position 25 of 38 eligible properties in the provider sample.
Budget choice: €115.29 per night was the lowest eligible reference price after reserving the upscale choice.
Price context: €115.29/night versus a sample median of €179.50/night (36% below the median).
Location: Funchal. Address: Rua Imperatriz D. Amelia , 85, Se, 9000-018 Funchal, Portugal. Walking times are estimates from map distance.

Best Value★ Our pick

9.2€124 / night

Hotel Cajú

★★★★Sao Pedro

Best forMost travellers · Sightseeing on foot

9.2/10 from 807 guest reviews
≈ 5 min walk to Cathedral of Funchal
Chosen from 40 hotels

807 Booking.com reviewsLocation 9.8Price checked on Booking.com · 8 Oct 2026

Guests sayLocation: Situated on a quiet pedestrian street in the city centre near restaurants and the marina.
Beds: Large and often restful, though some guests find the mattresses too soft or sagging.

Great breakfast

Reference rate

Check price & availability ↗

We may earn a commission if you book. It never changes our picks.

Sold out? See available alternatives → Read the full review →

Map ↗

Report an error

Why this Best Value pick

Guest feedback: 9.2/10 from 807 guest reviews; review-score position 7 of 38 eligible properties in the provider sample.
Best Value choice: the strongest review-confidence score at or near the sample median price (€179.50/night).
Price context: €123.50/night versus a sample median of €179.50/night (31% below the median).
Location: Funchal. Address: 112 Rua da Carreira, Sao Pedro, 9000-042 Funchal, Portugal. Walking times are estimates from map distance.

Luxury

9.7€498 / night

Quinta Jardins do Lago

★★★★★Sao Pedro

Best forSpecial occasions · Wellness breaks

9.7/10 from 538 guest reviews
≈ 20 min walk to Cathedral of Funchal
Chosen from 40 hotels

538 Booking.com reviewsLocation 9.4Price checked on Booking.com · 8 Oct 2026

Guests sayStaff: Friendly, professional team provide attentive and welcoming service.
Dinner: Quality varies, with reports of limited menus and inconsistent cooking standards.

Family rooms
Spa
Great breakfast

Reference rate

Check price & availability ↗

We may earn a commission if you book. It never changes our picks.

Sold out? See available alternatives → Read the full review →

Map ↗

Report an error

Why this Luxury pick

Guest feedback: 9.7/10 from 538 guest reviews; review-score position 1 of 38 eligible properties in the provider sample.
Luxury choice: A 5-star stay with the strongest review-confidence score among the eligible upscale options.
Price context: €498.00/night versus a sample median of €179.50/night (2.8× the median).
Location: Funchal. Address: Rua Dr. João Lemos Gomes nº29, Sao Pedro, 9000-208 Funchal, Portugal. Walking times are estimates from map distance.

Compare the three hotels side by side · Hotels near: Cabo Girão, Cathedral of Funchal, Madeira Botanical Garden

Do you agree with our three picks?

🏋️ The best hotel gyms in Funchal →

🏊 The best hotel pools in Funchal →

Reference rate: 10–12 Nov 2026, 2 adults, 1 room · Price checked on Booking.com · 8 Oct 2026.

Share:WhatsApp Facebook X✉ Email these 3 to me

Where to stay in Funchal

Each pick sits in a different part of town. Choose the base that fits your trip.

Budget

Se

Quinta Da Penha De Franca · ≈ 18 min walk to Cathedral of Funchal

Best for: Smart-budget trips, Beach holidays

Best Value

Sao Pedro

Hotel Cajú · ≈ 5 min walk to Cathedral of Funchal

Best for: Most travellers, Sightseeing on foot

Luxury

Sao Pedro

Quinta Jardins do Lago · ≈ 20 min walk to Cathedral of Funchal

Best for: Special occasions, Wellness breaks

Map

BudgetBest ValueLuxuryCabo Girão · Cathedral of Funchal · Madeira Botanical Garden

Funchal hotels compared

Pick	Hotel	Area	Stars	Guest score	Ref. price / night
Budget	Quinta Da Penha De Franca	Se	4	8.4 (2,832)	€115
Best Value	Hotel Cajú	Sao Pedro	4	9.2 (807)	€124
Luxury	Quinta Jardins do Lago	Sao Pedro	5	9.7 (538)	€498

Questions about hotels in Funchal

What is the best budget hotel in Funchal?: Quinta Da Penha De Franca (Se): 8.4/10 · 2,832 reviews · €115 / night · Guests say: “Location: Quiet setting by the sea within walking distance of the city centre and restaurants.”
What is the best value hotel in Funchal?: Hotel Cajú (Sao Pedro): 9.2/10 · 807 reviews · €124 / night · Guests say: “Location: Situated on a quiet pedestrian street in the city centre near restaurants and the marina.”
What is the best luxury hotel in Funchal?: Quinta Jardins do Lago (Sao Pedro): 9.7/10 · 538 reviews · €498 / night · Guests say: “Staff: Friendly, professional team provide attentive and welcoming service.”
Where should I stay in Funchal?: Our three picks are in Se, Sao Pedro. Open each hotel on the map to see the neighbourhood before you book.
Are these hotel prices live?: No. They are reference rates for 10–12 Nov 2026, 2 adults and 1 room, checked on Booking.com on October 8, 2026. The booking link shows the current rate for your dates.

How we pick the three

Budget is the lowest eligible reference rate. Best Value balances price and guest score. Luxury prioritises five-star hotels; if none qualify, a four-star rated 8.5+ is labelled as an upscale alternative. Every pick shows its source, review count and when we checked it. This is a data-based shortlist, not a paid ranking. How we choose →

Sources

Guest scores, review counts, reference prices and hotel photos: Booking.com. City photos: Wikimedia Commons. Sights: Wikipedia. Maps: OpenStreetMap. Price checked on Booking.com · 8 Oct 2026.

Is your hotel one of these three?

Add the official Top 3 badge to your website. Copy this code:

Quinta Da Penha De Franca

<a href="https://www.top3hotels.com/funchal" target="_blank" rel="noopener" title="Top3Hotels Budget pick in Funchal"><img src="https://www.top3hotels.com/badge/funchal/budget.svg" width="180" height="60" alt="Top 3 Budget pick in Funchal 2026 · Top3Hotels"></a>

Hotel Cajú

<a href="https://www.top3hotels.com/funchal" target="_blank" rel="noopener" title="Top3Hotels Best Value pick in Funchal"><img src="https://www.top3hotels.com/badge/funchal/value.svg" width="180" height="60" alt="Top 3 Best Value pick in Funchal 2026 · Top3Hotels"></a>

Quinta Jardins do Lago

<a href="https://www.top3hotels.com/funchal" target="_blank" rel="noopener" title="Top3Hotels Luxury pick in Funchal"><img src="https://www.top3hotels.com/badge/funchal/lux.svg" width="180" height="60" alt="Top 3 Luxury pick in Funchal 2026 · Top3Hotels"></a>

For hotels →

Add this Top 3 to your blog or website

Copy this code. It shows the three picks with photos and links, and stays up to date. Preview ↗

<iframe src="https://www.top3hotels.com/embed/funchal" width="100%" height="420" style="border:0;border-radius:16px;max-width:720px" loading="lazy" title="Top 3 hotels in Funchal · Top3Hotels"></iframe>

Near Funchal

Compare Funchal with: London · Paris · Rome · Barcelona · Amsterdam · New York

Run a hotel in Funchal?

Get a free badge for your website, see how travellers find you, or apply for a labelled partner feature with photos and video.

Work with us →

3 cities, 9 hotels, every Friday

One short email with three destinations and their Budget, Best Value and Luxury picks. No spam, unsubscribe in one click.

More in Portugal

All Portugal destinations →

★ Check price & availability

The 3 best hotels in Funchal.

Quinta Da Penha De Franca

Hotel Cajú

Quinta Jardins do Lago

Where to stay in Funchal

Se

Sao Pedro

Sao Pedro

Map

Funchal hotels compared

Questions about hotels in Funchal

How we pick the three

Sources

Is your hotel one of these three?

Add this Top 3 to your blog or website

Near Funchal

Run a hotel in Funchal?

Recently viewed

3 cities, 9 hotels, every Friday

More in Portugal