While the Portuguese island of Madeira has all sorts of hotels, from grandes dames with Michelin-starred restaurants to emerging wine-tourism retreats, the destination does particularly well with all-inclusive hotels. The place is practically custom-made for a pay-once, forget-the-rest holiday. 

There’s a concentration of these no-fuss resorts in Canico de Baixo, a region just east of the island’s capital of Funchal; although it’s still easy to find enticing places to stay in the capital itself, as well as in more offbeat destinations like Calheta and Santa Cruz. While there’s a good variety of options, they all offer easy access to an island — off the coast of Morocco — that has springtime weather all year round, a very tasty fortified wine, magnificent mountains, an unusual gastronomy, and stunning hiking trails beside the island’s water channels. Of course, if you simply want to lie in the sun, that’s never frowned upon. Here are the best all-inclusive hotels in Madeira. 

Main photo: Vila Gale Santa Cruz

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1. Hotel Riu Madeira, Canico de Baixo

Best for panoramic views
A top-to-bottom refurbishment in 2022 gave new life to the renamed Riu Madeira. The grand hotel, with its 327 rooms, is tucked into a hillside above Canico’s waterfront, with views out over the Atlantic. Two of its three swimming pools are outdoors, with a third indoors and beautifully air conditioned. There’s also a paddling pool for children, and a pebble beach just a short walk down the hill. Between the three restaurants, guests have a variety of dining options, including a no-fuss buffet at the main restaurant, gourmet restaurant Kulinarium and a casual grill, Pepe’s Food, for lunch and snacks. 

Spa Y
Pool Y
Price ££
Restaurants 3
Premium drinks package N

Hotel Riu Madeira, Canico de Baixo, one of the best all-inclusive hotels in Madeira
Hotel Riu Madeira

2. Pestana Ocean Bay, Funchal

Best for city access
Just outside the regional capital of Funchal, the Pestana Ocean Bay is a hotel with a panoramic view of the Camara de Lobos hillside. Each of the 217 rooms faces the Atlantic Ocean, and has a balcony for fully enjoying the scene of the biggest public beach in Madeira, Praia Formosa. It’s a stunning site, but at mealtimes, the poolside restaurant beckons with its buffet spread and bar that specialises in local soft drinks and stronger brews. If you wish to wander down to Praia Formosa, you’ll find a complex of four beaches, some with rounded pebbles and others with black sand, that extend for a mile and a quarter. Alternatively, the hotel runs free, frequent shuttles to the centre of Funchal.

Spa Y
Pool Y
Price £££
Restaurants 4
Premium drinks package £43 per person per week

Pestana Ocean Bay, Funchal, one of the best all-inclusive hotels in Madeira
Pestana Ocean Bay

3. The Views Oasis, Canico de Baixo 

Best for families
The Views Oasis is focused primarily on families and children, offering a variety of facilities and services such as a children’s saltwater swimming pool, a playground and games room, and babysitting (for an additional fee), as well as a great location right by the sea. There’s a heated outdoor swimming pool with saltwater and an indoor pool at the spa — and that spa provides an array of international therapies, including Turkish baths and a hammam treatment room. Also of note is the culinary program, overseen by Octavio Freitas, executive chef of the Four Views Hotels group and one of the most respected cooks on the island. The all-day Acquamarina serves crowd-pleasing dishes in a casual environment and the Atalaia restaurant hosts special fixed-menu evenings such as Fish Lovers or Grill Night. 

Spa Y
Pool Y
Price ££
Restaurants
Premium drinks package N

The Views Oasis, Canico de Baixo, one of the best all-inclusive hotels in Madeira
The Views Oasis

4. Pestana Royal, Funchal

Best for on-site activities
A swim-up bar, mini golf and tennis courts are just a few of the activities available to guests at the Pestana Royal. It’s also just two minutes from Praia Formosa, with its panoramic views of the Cabo Girao hillside, and just a ten-minute drive from the city’s restaurants, shopping and main sights. There’s an all-day restaurant for meals (and snacks), as well as three themed restaurants — Madeiran, Italian and Asian — that open only on specific days and by reservation, making for a more exclusive experience.

Spa Y
Pool Y
Price £££
Restaurants 4
Premium drinks package £43 per person per week

Pestana Royal, Funchal, one of the best all-inclusive hotels in Madeira
Pestana Royal

5. Vila Gale Santa Cruz, Santa Cruz 

Best for beach lovers
Away from busy Funchal, the town of Santa Cruz maintains its Portuguese soul and is less crowded than the capital. The Vila Gale, part of a Portuguese chain, is one of the biggest hotels in the municipality, with an enormous sea-facing swimming pool to complement the pebble beach that’s right in front of the property. One of the island’s few sandy beaches is a short drive away by car. The 262 rooms are warm and sophisticated, making the most of their Atlantic views. And although the hotel gives the sense of being far from the city, Funchal is just a 15-minute drive away. 

Spa Y
Pool Y
Price ££
Restaurants 2
Premium drinks package N

Vila Gale Santa Cruz, one of the best all-inclusive hotels in Madeira
Vila Gale Santa Cruz

6. Enotel Lido, Funchal

Best for spa
One of Madeira’s most luxurious all-inclusive resorts, the Enotel Lido is an innovative five-star hotel that’s fresh from a 2021 renovation. That’s most clearly seen in the spa, which has a grotto-like indoor flotation pool with water full of mineral salts — very Zen — and it has a variety of aesthetic treatments and holistic massages. Outside, the infinity pool is a prime spot for admiring the views over the Atlantic. The four restaurants range from an all-day buffet at Atlantico, as well as island specialties at O Bailinho, Italian fare at Vela di Canale and Asian gastronomy at Kai. 

Spa Y
Pool Y
Price £££
Restaurants 4
Premium drinks package N

A bartender serves drinks at Enotel Lido, Funchal, one of the best all-inclusive hotels in Madeira
Bar service at Enotel Lido

7. Calheta Beach, Calheta

Best for nightlife
Away from the capital in the small town of Calheta, the Calheta Beach hotel is one of few on the island to have a sandy beach for sunbathing, alongside the more common pebble beaches. Sheltered lagoons on either side of the property act as a sort of bookends, offering calm waters for swimming. The Atlantic tumbles up right in front of the hotel, allowing for excellent views even when the swimming conditions are not quite optimal. There’s also a large outdoor pool, and once the sun has plunged into the sea, a lively evening entertainment program kicks in.

Spa Y
Pool Y
Price ££
Restaurants 2
Premium drinks package N

Calheta Beach, Calheta, one of the best all-inclusive hotels in Madeira
Calheta Beach

8. Rocamar, Canico de Baixo

Best for diving
The four-star Rocamar is on a sea cliff above the ocean, making its views over the Atlantic a highlight. It also has a reputation for being a friendly and relaxed option away from Funchal, although there is a weekday private minibus service to the centre. It’s part of a larger resort complex that also includes the Royal Orchid and Cais da Olveira hotels, which allows guests at any of them to enjoy the restaurants and facilities. That includes the Atalaia Diving Center — the house reef starts right where the protected natural park ends and is the largest in Madeira, with six diving points that can be reached directly from the volcanic coast. For non-divers, the hotel also has a saltwater pool and direct access to the ocean via stairs. 

Spa N
Pool Y
Price ££
Restaurants 2
Premium drinks package N

Rocamar, Canico de Baixo, one of the best all-inclusive hotels in Madeira
Rocamar

9. Hotel Royal Orchid, Canico de Baixo

Best for a stress-free holiday
Part of the Rocamar resort complex, Hotel Royal Orchid is a four-star property with 104 modern and comfortable studios, junior suites and full suites, all with kitchenettes. On the sea-view side of the building, they also come with balconies. The Gold Gym offers a space for cardio fitness overlooking the sea and a large room for group classes. The outdoor pool, on a large terrace, also has a prime view of the ocean. In addition to the buffet restaurant, guests have the option of dining at other restaurants within the resort complex. 

Spa Y
Pool Y
Price ££
Restaurants 2
Premium drinks package N

Stand-up paddleboarding at Hotel Royal Orchid, Canico de Baixo, one of the best all-inclusive hotels in Madeira
Stand-up paddleboarding at Hotel Royal Orchid

10. Cais da Oliveira, Canico de Baixo

Best for relaxation
This charming, colourful four-star hotel is on the small bay that forms a nature reserve and is the quietest part of the resort area of Canico de Baixo. The 66 rooms and suites all have balconies or terraces, as well as a bright, cheerful colour palette and useful kitchenettes. It has access to all the amenities of the Rocamar resort complex, including various restaurants, shuttles, a gym and a dive centre. The signature dining experience is the à la carte Lee Hamilton Steak House restaurant, which has striking ocean views and a meaty menu emphasising Mediterranean cuisine. Its terrace and garden are great places for a cocktail before dinner.

Spa N
Pool Y
Price ££
Restaurants 2
Premium drinks package N

Cais da Oliveira, Canico de Baixo, one of the best all-inclusive hotels in Madeira
Cais da Oliveira

11. Dom Pedro, Machico 

Best for children
Off the beaten path in the island’s calm northeast, the Dom Pedro — part of a well-regarded Portuguese brand — is connected to a convention centre but also has plenty of amenities for families. There’s a separate children’s pool, and the hotel offers childcare. Older kids can enjoy the racquetball, tennis and volleyball courts. The location puts it close to Madeira’s levada (water channel) walks, and it can organise activities such as guided hikes to Pico do Facho or surf lessons on Machico beach. The restaurant, Baia de Zarco, has excellent ocean views, as do many of the 218 rooms and the saltwater swimming pool. 

Spa N
Pool
Price ££
Restaurants 1
Premium drinks package N

Dom Pedro, Machico, one of the best all-inclusive hotels in Madeira
Dom Pedro

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