Cheap Hotels in Old Town Funchal

Wonderful place to stay. The terrace is delightful at any time of day. To be honest, I didn't want to leave the hotel for any reason except to hike. The service was amazing and there are many excellent dining options. Highly recommend!!

We had a very pleasant stay.

The Vine was an excellent hotel in a great location. The staff were all friendly and helpful. I would particularly highlight Hermes, Carmo, Bernardo and Jorges in the bar, the restaurant and at breakfast. It was a shame that my room upgrade was not available but the room we had was still nice. The Vine is easy walking distance to the harbour, the old town and multiple restaurants. The rooftop pool, bar and restaurant are also a fantastic place to spend time.

We loved our stay at the Barcelo. The room was very clean. The king sized bed was very comfortable as was the sofa bed which our daughter slept on. There was plenty of room in our room which was the standard basic room for 3 people. We loved the shower as well. The breakfasts were amazing and we really liked how the hotel opened up onto the main street where you could dine. The rooftop had amazing views and the decor and service was fantastic. A couple of times the water bottle wasn’t replenished (1 bottle is free per night) but when calling reception, they quickly gave us one. We would like to come back and recommend the Barcelo which is also located perfectly for visiting Funchel. The staff were very nice as well.

The hotel is right on the water. Its beautiful and clean. The pool and lounge area is clean and set up very well. Breakfast was wonderful. Everyone on staff was helpful and friendly. Excellent hotel!!

I stayed at Saccharum Resort & Spa and while the stunning views are an obvious highlight, what really stood out to me was the hotel’s design. It honours its past as a former sugar cane factory — with original machinery cleverly integrated into the lobby and hallways. Think softened brutalism: raw textures balanced by warm materials, plenty of natural light, and an organic palette that ties everything back to the surrounding mountains. The attention to detail is impressive!!! Our room was gorgeous — it overlooked the ocean, and with the mountains rising just beside us, we felt perfectly tucked between both. A rare and calming combination. Even when the hotel was busy, it never felt crowded. There are multiple lounging areas, and we always found a spot to relax. The pools were a highlight — especially the indoor one, which is beautifully designed, heated, and great for cooler days or when you want a break from the sun. The large window looking out at the mountains makes being indoors feel like part of the experience. The food was varied and healthy, and we appreciated how the hotel clearly communicated when breakfast would be busy — a small but thoughtful detail that made a difference. And if you’re looking for more variety, there are plenty of restaurants nearby. The staff were consistently courteous, multilingual, and genuinely helpful — from check-in to daily service. Saccharum strikes a rare balance: thoughtful design, warm hospitality, and a peaceful atmosphere.